PROPERTY  OF 
HON.  JOHN  W.  KBPHART 


UNIVERSITY 

OF  CALIFORNIA 

LOS  ANGELES 


SCHOOL  OF  LAW 
LIBRARY 


INHERITANCE  TAXES 
FOB  INVESTORS 


INHERITANCE  TAXES 
FOR  INVESTORS 

Some  practical  notes  on  the  inheritance  tax  laws  of 

each  of  the  States  of  the  United  States,  with 

particular  reference  to  their  application 

to  non-resident  investors 

BY 
HUGH  BANCROFT 

(Of  the  Massachusetts  Bar) 
SECOND  EDITION  REVISED  TO  JANUARY  1,  1917 


BOSTON  AND  NEW  YORK 

HOUGHTON   MIFFLIN   COMPANY 

<£fc  ttitaerfibe  press,  Cambridge 

1917 


COPYRIGHT,   1911,  BY  BOSTON  NEWS  BUREAU  COMPANY 
COPYRIGHT,   1917,   BY   HUGH   BANCROFT 

ALL  RIGHTS  RESERVED 

Published  May  zqrf 


PREFACE  TO  FIRST  EDITION 

THIS  is  a  collection  of  a  series  of  articles  published  in 
the  Boston  News  Bureau  in  February  and  March,  1911. 
They  were  prepared  for  the  purpose  of  showing  to  in- 
vestors how  seriously  they  may  be  affected  by  the  inher- 
itance tax  laws  of  every  State  in  the  country  as  well  as 
the  one  in  which  they  happen  to  live.  It  was  also  hoped 
that  they  might  be  of  some  help  to  the  movement  for  the 
adoption  of  a  uniform  law  that  will  do  away  with  the 
double  taxation  which  is  such  a  frequent  result  of  the 
working  of  the  present  laws. 

The  articles  are  reproduced  with  almost  no  change  in 
substance,  and  in  the  order  in  which  they  were  first 
printed.  The  fact  that  they  were  originally  a  series  of 
newspaper  articles  accounts  for  the  prevalence  of  the 
editorial  "we." 

Though  this  is  intended  to  be  only  a  handbook  for  in- 
vestors and  those  called  upon  to  advise  about  invest- 
ments, it  is  hoped  that  it  may  be  found  useful  as  well  by 
attorneys  who  wish  to  obtain  some  familiarity  with  the 
situation.  For  that  reason,  citations  have  been  made  of 
some  of  the  more  important  cases.  In  preparing  these 
articles  the  statutes  were  examined  to  January  1,  1911, 
and  there  have  been  no  material  changes  since  then. 

H.  B. 

March  15,  1911. 


PREFACE  TO  SECOND  EDITION 

SINCE  these  articles  were  first  published,  the  inher- 
itance tax  laws  of  most  States  have  been  materially 
changed.  Most  of  the  work  of  revision  to  include  leg- 
islation to  January  1,  1917,  has  been  done  by  my  col- 
league, Arthur  W.  Blakemore,  Esq.,  of  the  Massa- 
chusetts Bar. 

H.  B. 


CONTENTS 

I.  RECENT  DEVELOPMENT  OF  INHERITANCE  TAXA- 
TION     1 

II.  INHERITANCE  TAX  LAWS  NOW  ENACTED  BY  FORTY- 
THREE  STATES  —  DIRECT  AND  COLLATERAL  IN- 
HERITANCES DISTINGUISHED 4 

III.  RATES  OF  TAX  AND  EXEMPTIONS      ....      6 

IV.  THE  STATES  WHICH  TAX  SECURITIES  OWNED  BY 

NON-RESIDENTS 9 

V.  SOME  GENERAL  RULES  —  HARDSHIPS  ON  NON- 
RESIDENTS IN  ADMINISTERING  THE  LAW  .  13 

VI.  THE  STATES  WHICH  HAVE  NO  INHERITANCE  TAX 

LAW 17 

VII.  THE    STATES    WHICH    HAVE    INHERITANCE  TAX 

LAWS 19 

VIII.  THE  FEDERAL  LAW:  A  UNIQUE  DOCUMENT        .    96 

IX.  A   MOVEMENT   FOR   A   UNIFORM    INHERITANCE 

TAX  LAW 100 

X.  SOME  MATTERS  NOT  TOUCHED  UPON  —  THE  PO- 
SITION OF  TRUST  CERTIFICATES  —  SOME  EF- 
FORTS TO  AVOID  DOUBLE  TAXATION  .  .  .  104 

XI.  CANADA 109 

LIST  OF  CORPORATIONS 113 

LIST  OF  STATE  OFFICIALS 127 

LIST  OF  CANADIAN  OFFICIALS    .      .      .      .  I    .  129 
INDEX  .      .      .131 


INHEKITANCE  TAXES 

CHAPTER  I 

RECENT  DEVELOPMENT  OF  INHERITANCE  TAXATION 

THERE  are  few  questions  so  important  to  far-sighted 
investors  as  that  of  inheritance  taxes,  and  there  are  few 
subjects  so  little  understood.  This  is  not  in  the  least  sur- 
prising. A  survey  of  the  situation  in  the  United  States 
is  like  a  journey  through  a  chaos,  peopled  by  sovereign 
States,  each,  wolf -like,  seeking  some  pretext  to  take  for 
itself  a  bite  out  of  every  estate  that  comes  along. 

Most  of  the  inheritance  tax  legislation  is  new  —  the 
acts  in  nineteen  States  were  passed  in  1909  and  1910, 
and  important  amendments  or  entirely  new  acts  have 
been  passed  in  most  of  the  States  since  that  time.  Much 
of  this  legislation  is  ill-considered:  a  State  enacts  a  law 
patterned  after  that  of  another  without  having  much 
idea  of  what  it  means;  different  officials  in  the  same 
State  read  the  law  differently;  and  many  of  the  most 
important  questions  have  not  yet  been  passed  upon  by 
the  courts. 

Until  a  comparatively  short  time  ago  few  States 
taxed  inheritances.  Those  that  did  were  modest  in  their 
demands,  and  the  payment  of  an  inheritance  tax  to  any 
except  the  deceased's  home  State  was  almost  unknown. 

Now  all  but  five  States  have  an  inheritance  tax  law 
of  some  sort.  Twenty-five  per  cent  is  regarded  as  an 
equitable  figure  for  large  estates  in  some  quarters,  and 
tax  attorneys  are  employed  to  try  to  collect  from  estates 


2  INHERITANCE  TAXES 

of  men  who  never  lived  in  a  State  and  never  owned  a  bit 
of  property  physically  within  the  State. 

Most  of  these  laws  have  been  passed  within  a  dozen 
years,  and  under  them  the  claim  has  been  quite  gener- 
ally asserted  and  enforced  that  the  State  of  incorpora- 
tion is  entitled  to  an  inheritance  tax  on  stock  owned  by 
a  non-resident,  and  in  some  cases  on  bonds  as  well. 

As  the  State  of  residence  (with  few  exceptions)  in  no 
way  relinquishes  or  modifies  its  tax  on  this  account,  it 
has  become  fairly  common  for  estates  to  pay  inheritance 
taxes  twice  on  the  same  shares  of  stock. 

Even  this  is  not  enough.  A  corporation  is  organized  in 
one  State,  does  all  its  business  in  another,  and  the  stock- 
holder lives  in  a  third.  We  find  the  second  State  in  sev- 
eral instances  seeking  to  tax  the  shares  as  well  as  the 
other  two.  If  such  a  corporation  owns  property  in  sev- 
eral States  there  are  splendid  possibilities  for  the  tax- 
gatherers,  though  no  State,  in  the  case  of  a  corporation 
organized  elsewhere,  has  gone  further  than  to  claim  a 
tax  based  on  the  proportion  of  the  value  of  the  property 
within  the  State  to  the  entire  property  of  the  corpora- 
tion. 

On  the  other  hand,  some  States  allow  credit  for  pay- 
ments made  to  other  States;  exempted  amounts  are 
often  so  liberal  that  ordinary  investment  holdings  es- 
cape; and  taxes  on  property  going  to  near  relatives  are 
frequently  not  onerous. 

Collateral  relatives  and  strangers  seem  to  be  generally 
considered  fair  game,  and  two  States,  Iowa  and  North 
Dakota,  have  singled  out  the  non-resident  alien,  one  for 
a  twenty  per  cent  tax,  the  other  for  twenty-five  per  cent. 

It  must  be  noted  that  the  tendency  during  the  last 
few  years  seems  to  be  setting  strongly  toward  sanity 


INHERITANCE  TAXES  S 

under  the  leadership  of  the  great  Eastern  States.  The 
fact  that  States  like  New  York,  Connecticut,  Massa- 
chusetts, New  Hampshire,  and  Vermont  have  very  re- 
cently abandoned  double  taxation  of  personal  property 
has  already  had  some  effect  on  the  Western  lawmakers, 
and  will  doubtless  eventually  lead  to  a  universal  adop- 
tion of  the  principles  laid  down  in  these  new  statutes. 

There  still  remains,  however,  a  distinct  and  natural 
line  of  cleavage  between  the  Eastern  or  creditor  States 
and  the  Western  or  debtor  States  in  this  particular. 

Notable  recent  developments  are  the  attempt  to  ex- 
tend the  tax  to  insurance  policies  in  Massachusetts  and 
Wisconsin  and  to  interests  in  co-tenancy  in  Massachu- 
setts and  New  York. 

The  recent  federal  law,  drafted  on  novel  lines,  proba- 
bly opens  a  new  chapter  in  the  theory  and  history  of  the 
subject.1 

In  the  preparation  of  this  new  edition,  the  statutes 
and  decisions  of  all  the  States  have  been  examined  down 
to  January  1,  1917.  As  the  courts  in  most  of  the  States 
have  not  passed  upon  the  questions  that  most  affect  non- 
residents, and  the  language  of  the  statutes  themselves  is 
seldom  specific  as  to  their  application  to  non-residents, 
information  has  been  sought  —  often  in  vain — from  the 
Tax  Commissioner,  Attorney-General,  or  other  appro- 
priate officer  to  find  out  how  the  tax  authorities  in  each 
State  are  construing  their  own  law.  In  very  few  States 
is  there  any  well-established  practice  in  inheritance  tax 
matters,  and  many  of  the  present  rulings  may  be 
changed  at  any  time  by  the  courts  or  by  the  tax  author- 
ities themselves. 

1  See  post,  p.  96  et  seq. 


CHAPTER  H 

INHERITANCE  TAX  LAWS  NOW  ENACTED  BY  FORTY- 
THREE    STATES  —  DIRECT   AND    COLLATERAL 
INHERITANCES  DISTINGUISHED 

BEFORE  entering  the  maze  of  inheritance  tax  legisla- 
tion, the  investor  can  somewhat  simplify  his  problem 
by  a  process  of  elimination. 

Inheritance  tax  laws,  as  a  rule,  tax  all  property,  real 
or  personal,  situated  within  the  State,  whether  owned 
by  a  resident  or  non-resident,  and  also  personal  property 
of  a  resident  which  is  situated  without  the  State. 

Such  laws  have  been  enacted  by  all  but  five  States, 
and  the  District  of  Columbia.  The  investor  may  then 
become  fully  posted  as  to  the  future  of  his  estate,  so  far 
as  the  States  of  the  Union  are  concerned,  by  the  study 
of  forty-three  enactments,  adding  Hawaii  and  Porto  Rico 
if  he  chooses.  There  is  yet  a  chance  that  his  labors  may 
be  further  simplified,  for  eleven  of  the  States  exempt 
direct  inheritances  and  tax  only  collateral  inheritances. 

By  a  direct  inheritance  is  meant,  usually,  property 
passing  to  a  father,  mother,  husband,  wife,  child  (includ- 
ing adopted  child),  and  lineal  descendant.  Some  States 
include  brothers  and  sisters  and  also  the  wife  of  a  son 
and  husband  of  a  daughter.  By  a  collateral  inheritance 
is  meant  property  passing  to  other  more  distant  rela- 
tives or  to  strangers. 

If  the  investor  is  satisfied  to  have  his  property  "stay 
in  the  family,"  he  may  reduce  his  labors  to  the  study  of 
thirty-two  enactments,  besides  the  federal  tax  under 
the  revenue  law  of  1916. 


INHERITANCE  TAXES 


5 


The  following  table  indicates  what  States  have  an 
inheritance  tax,  what  States  tax  direct  inheritances, 
and  what  States  tax  collateral  inheritances. 


Mate 


Inheritance  tax 
lawf 


Direct  inherit- 
ance tax  f 


Collateral  in- 
heritance tax  t 


Alabama No 

Arizona Yes 

Arkansas Yes 

California Yes 

Colorado Yes 

Connecticut Yes 

Delaware Yes 

District  of  Columbia No 

Florida No 

Georgia Yes 

Hawaii Yes 

Idaho Yes 

Illinois Yes 

Indiana Yes 

Iowa Yes 

Kansas Yes 

Kentucky Yes 

Louisiana Yes 

Maine Yes 

Maryland Yes 

Massachusetts Yes 

Michigan Yes 

Minnesota Yes 

Mississippi No 

Missouri Yes 

Montana Yes 

Nebraska Yes 

Nevada Yes 

New  Hampshire Yes 

New  Jersey Yes 

New  Mexico No 

New  York Yes 

North  Carolina. Yes 

North  Dakota Yea 

Ohio Yes 

Oklahoma Yes 

Oregon Yes 

Pennsylvania Yes 

Porto  Rico Yes 

Rhode  Island Yes 

South  Carolina No 

South  Dakota Yes 

Tennessee Yes 

Texas Yes 

Utah Yes 

Vermont Yes 

Virginia Yes 

Washington Yes 

West  Virginia. Yes 

Wisconsin Yes 

Wyoming Yes 

United  States Yes 


No 

Yes 

Yes 

Yes 

Yes 

Yes 

No 

No 

No 

Yes 

Yes 

Yes 

Yes 

Yea 

No 

Yes 

Yes 

Yes 

Yes 

No 

Yes 

Yes 

Yes 

No 

No 

Yes 

Yes 

Yea 

No 

Yes 

No 

Yes 

Yes 

Yes 

No 

Yea 

Yes 

No 

Yes 

Yes 

No 

Yes 

Yes 

No 

Yes 

No 

No 

Yes 

Yea 

Yea 

Yes 

Tax  on  estate 


No 
Yes 
Yes 
Yes 
Yea 
Yes 
Yes 
No 
No 
Yes 
Yes 
Yea 
Yes 
Yes 
Yes 
Yea 
Yes 
Yes 
Yes 
Yes 
Yes 
Yes 
Yea 
No 
Yes 
Yes 
Yes 
Yes 
Yea 
Yes 
No 
Yea 
Yes 
Yes 
Yes 
Yes 
Yea 
Yes 
Yes 
Yes 
No 
Yes 
Yes 
Yes 
Yes 
Yes 
Yes 
Yes 
Yes 
Yes 
Yes 


CHAPTER  in 
BATES  OF  TAX  AND  EXEMPTIONS 

THE  principle  of  exempting  small  inheritances  from 
any  tax  is  very  generally  recognized,  but  there  is,  as 
might  be  expected,  a  wide  diversity  in  the  amount  of  the 
exemption  and  in  the  rates  of  tax. 

In  nearly  every  State  direct  inheritances  are  treated 
much  more  liberally  than  collateral  inheritances,  both  as 
to  rates  and  as  to  exemptions. 

Eleven  of  the  forty-three  States  with  inheritance  tax 
laws  exempt  direct  inheritances  altogether.  All  but 
Utah  tax  direct  inheritances  at  a  lower  rate,  and  grant 
larger  exemptions  to  direct  inheritances  than  to  collat- 
eral inheritances. 

As  many  of  the  States  have  complicated  schemes  of 
graduated  rates  and  exemptions,  there  is  some  difficulty 
in  presenting  a  simple,  comparative  table.  The  ap- 
pended table  shows  the  extreme  range  of  rates  and 
exemptions. 

On  direct  inheritances  one  per  cent  is  the  favorite 
rate,  and  ten  thousand  dollars  is  the  common  exemp- 
tion. The  husband  or  wife  and  children  are  most  favored 
where  there  are  graduated  rates,  and  large  inheritances 
are  taxed  more  than  small  ones. 

On  collateral  inheritances  the  common  minimum  rate 
is  five  per  cent,  with  maximum  rates  running  up  to  ten, 
fifteen,  and  in  California  thirty  per  cent.  Exemptions 
seldom  exceed  five  hundred  dollars.  When  the  rates 
and  exemptions  are  graduated,  nearness  of  relationship 


INHERITANCE  TAXES 


is  usually  considered,  and  the  heavy  rates  are  imposed 
on  large  inheritances. 

It  is  almost  invariably  the  size  of  the  inheritance, 
not  the  size  of  the  estate,  that  determines  the  tax.  Thus, 
an  estate  of  thirty  thousand  dollars  passing  in  three 
equal  shares  to  the  widow  and  two  children,  in  a  State 
with  an  exemption  of  ten  thousand  dollars,  would  pay 
no  tax;  that  is,  unless  property  is  specifically  devised,  it 
is  usually  taxed  as  though  a  pro-rata  share  were  given  to 
each  beneficiary  of  the  estate.  The  table  follows :  — 


State* 

Direct  inheritance* 

Collateral  inheritance* 

Rate 
(per  cent) 

Exemption 

Rate 
(per  cent) 

Exemption 

1 
1-8 
1-15 
2-4 
1-4 

1 

2 
1-3 
1-2 
1-3 

1-3 

2 
1-2 

1-7 
1 
1-tJ 

1 

Not  taxed 
Not  taxed 
$5000 
$1000-$3000 
$10,000-$24,000 
$10,000 
$10,000  a 
Not  taxed 
Not  taxed 
Not  taxed 
$5000 
$5000 
$1000-$4000 
$20,000 

$2000-310,000 

Not  taxed 
Not  taxed 
$5000-810,000 
$10,000 
$500-$10,000 
Not  taxed 
$1000-$10,000 
«2000-$5000 
$3000-$10,000 
Not  taxed 
Not  taxed 
$7500 

2-6 
3-24 
3-30 
3-10 
3-8 
1-6 

5 
5 

li-15 
2-10 
1J-15 
5 
3-15 
1J-15 
5 
4-7 
5 
3-10 
'  6 
3-15 

5 

5 

Not  taxed 
Not  taxed 
$500 
$500 
$500-$2000 
$500 
$500-830000 
$500 
Not  taxed 
Not  taxed 
Nothing 
$500 
$500-$2000 
$500-$2000 
$100-$500 
$1000 
$200-$5000 
$500-$2000 
Nothing 
$500 
$500 
$1000 
$100 
$100-81000 
Not  taxed 
Nothing 
$500 

Alaska  

Arkansas  f  °  

Colorado0  

District  of  Columbia  .  . 
Florida  

Illinois  

Montana  *  

*  The  exemption  in  the  States  marked  with  an  asterisk  has  been  construed  to 
apply  to  the  estate  as  a  whole  rather  than  to  individual  shares. 

t  The  exemption  in  the  States  marked  with  a  dagger  depends  in  part  on  the  size 
of  the  estate  as  a  whole,  and  in  part  on  the  size  of  the  individual  share. 

0  In  the  above  States  the  distinction  between  direct  and  collateral  inheritances  is 
not  exactly  followed  in  making  the  rates  of  tax. 

a  Only  one  exemption  allowed  in  each  class. 

6  Iowa  taxes  non-resident  aliens  10-20  per  cent. 

c  Louisiana  exempts  property  that  bore  its  just  proportion  of  taxes  daring  own* 
er's  life. 


INHERITANCE  TAXES 


State* 

Direct  inheritance! 

Collateral  inheritance* 

Rate 
(per  cent) 

Exemption 

Rate 
(per  cent) 

Exemption 

Nebraska  

1 
1-0 

1-3 

1-4 
1-6 
1-3 

1-4 
1 

K4 

i-3 

1-3 
1-U 

3-6 

1 
1-3 
1-3 
2 

Tax  is  on  c 
cent.    » 

$10,000 
$10,000-$20,000 
Not  taxed 
$5000 
Not  taxed 
$500-$5000 
$2000-$10,000 
$10,000-$20,000 
Not  taxed 
$5000-$!  5,000 
$5000 
Not  taxed 
$200-«BOOO 
$26,000 
Not  taxed 
fWOO-*10,000 
$10,000 
Not  taxed 
$10,000 
Not  taxed 
Not  taxed 
$10,000 
$10,000-$!  5,000 
$2000-$10,000 
$10,000 

states  of  resident 
o  exemption  to  n 

2-6 
2-28 
6 
2-S 

2-8 
3-9 
li-15 
6 
6-10 
2-6 
6 
3-12 
5-8 

1J-15 
6 
2-12 
3-5 
6 
5 
3-12 
3-16 
1J-15 
5 

/s  exceeding  I 
in-resident*. 

$500-$2000 
Nothing-$10,000 
Nothing 
$500 
Not  taxed 
$500 
Nothing 
Notliing-*500 
$500 
$2500 
|500-$2000 
$250 

UN 

$1000 
Not  taxed 
$100-flOOO 
$250 
$500-S2000 
$10,000 
Nothing 
Nothing 
Nothing 
Nothing 
$100-$SOt 
$500 

50,000,  li-15  per 

Nevada  »  

New  Hampshire0  

New  York  °  

North  Carolina  

North  Dakota  d  

Ohio  »  

Rhode  Island/.  

South  Carolina  

South  Dakota  

Utah  *  

Virginia  

Washington  *  

West  Virginia  

United  State*  

*  The  exemption  in  the  States  marked  with  an  asterisk  has  been  construed  to 
apply  to  the  estate  as  a  whole  rather  than  to  individual  shares. 

0  In  the  above  States  the  distinction  between  direct  and  collateral  inheritances  is 
not  exactly  followed  in  making  the  rates  of  tax. 

d  North  Dakota  taxes  non-resident  aliens  25  per  cent. 

e  Oregon  exempts  entire  estate  if  less  than  $10,000,  direct ;  $500  to  $5000  collat- 
eral. 

/  Rhode  Island  also  imposes  a  tax  on  the  net  estate  of  J  per  cent ;  exemption, 
15000. 


CHAPTER  IV 

THE  STATES  WHICH  TAX  SECURITIES  OWNED  BY 
NON-RESIDENTS 

THE  States  that  have  inheritance  tax  laws,  as  a  rule, 
tax  all  property  that  is  situated  in  the  State,  whether  the 
owner  was  a  resident  or  not. 

Herein  lies  the  importance  to  the  investor  of  an  ac- 
quaintance with  the  inheritance  tax  laws  of  the  States 
other  than  the  one  in  which  he  lives,  especially  because 
most  States  do  not  confine  themselves  to  property  phy- 
sically within  the  State. 

These  States  treat  shares  in  corporations  organized 
under  their  laws  as  subject  to  an  inheritance  tax,  though 
held  without  the  State  by  a  non-resident.  This  is  on  the 
theory  that  as  the  corporation  itself  is  a  creature  of 
the  State,  its  shares  are  subject  to  the  jurisdiction  of  the 
State,  wherever  owned. 

As  the  State  of  residence  taxes  such  stock,  the  result  is 
that  two  States  tax  the  same  succession.  The  Supreme 
Court  of  the  United  States,  though  recognizing  the  hard- 
ship of  the  practice,  has  decided  that  the  Constitution 
does  not  prohibit  such  double  taxation.1 

Collection  of  this  tax  is  usually  enforced  by  holding 
the  corporation  itself  responsible  if  it  permits  the  trans- 
fer of  stock  for  a  foreign  executor  or  administrator  before 
the  tax  is  paid.  The  mere  location  of  a  transfer  office  in 
the  State  may  necessitate  a  waiver,  as  some  corporations 

1  Blackstone  v.  Miller,  188  U.S.  189. 


10 


INHERITANCE  TAXES 


State* 

Are  shares  of  non-resi- 
dents in  local  corpora- 
tion* subject  to  tax  t 

/*  tnr  claimed  on  stock 
of.  foreign  corporation* 
owning    property    in 
State  f 

No 

No 

Tea 

Yea 

Yea 

Yea 

Yea 

Yea 

Colorado  t**  

Yea 

Yea 

No 

No 

No  5 

No 

Florida  

No 

No 

Yea 

Yea 

Yea 

No 

Yea 

No 

No 

No 

Iowa  t     

Yea 

No 

Yea 

No 

Yea 

Yea 

Yea 

Yea 

Maine  }  

Yea  a 

Yea 

No 

No 

No 

No 

Yea 

Yea 

Yea 

No 

Yea 

No 

No 

No 

Yes 

No 

No§ 

* 

Yes 

Yea 

No 

No 

Yea 

No 

No 

No 

New  York  J  

No  6 

No 

North  Carolina  {**  

Yea 

No 

North  Dakota**  

Yes 

Yea 

Ohio  

No 

No 

Yea 

Yea 

Yea 

No 

No 

No 

No 

No 

No 

No 

No 

No 

South  Dakota  t**  

Yea 

No 

Yea 

* 

Texas  **  

Yea 

* 

Utah  t  

Yes 

No 

No 

No 

*  This  question  does  not  seem  to  have  been  raised  or  passed  upon  in  the  States 
marked  with  an  asterisk. 

§  In  the  States  so  marked  it  was  apparently  the  opinion  of  their  tax  officials  in 
1916  that  they  were  not  entitled  to  collect  such  a  tax,  and  we  do  not  know  that  the 
law  is  now  being  construed  differently.  Their  laws,  however,  are  practically  identi- 
cal with  the  laws  of  States  which  claim  this  tax,  and,  moreover,  contain  a  provision 
for  enforcing  its  collection. 

t  In  States  so  marked  a  corporation  transferring  stock  or  delivering  securities  is 
held  responsible  itself,  if  the  inheritance  tax  has  not  been  paid. 

**  These  States  also  tax  registered  bonds  of  local  corporations  owned  by  non-resi- 
dents. 

a  Only  when  the  corporation  has  taxable  property  in  Maine  exceeding  one  thou- 
sand dollars  in  value.  There  is  also  a  reciprocity  clause  exempting  residents  of  States 
which  exempt  Maine  decedents. 

b  New  York  taxes  such  transfers  of  business  corporations  in  proportion  to  the 
New  York  real  estate  they  hold. 


INHERITANCE  TAXES 


11 


Statej 

Are  shares  of  non-resi- 
dents in  local  corpora- 
tions subject  to  tax  t 

Ii  tax  claimed  on  stock 
of  foreign  corporations 
owning    property    in 
State  t 

No 

No 

Washington  J  

Yes 

No 

West  Virginia  J  

Yes 

No 

Yes 

No 

Yes 

* 

United  States.  —  See  post,  p.  96.  . 

*  This  question  does  not  seem  to  have  been  raised  or  passed  upon  in  the  States 
marked  with  an  asterisk. 

$  In  States  so  marked  a  corporation  transferring  stock  or  delivering  securities  ia 
held  responsible  itself,  if  the  inheritance  tax  has  not  been  paid. 

are  now  requiring  executors  to  obtain  New  York  waivers 
simply  on  the  ground  that  they  maintain  transfer  offices 
in  New  York. 

All  bonds  are  taxed  where  the  owner  resides,  and  if 
kept  in  another  State  are  likely  to  be  taxed  there  as  well. 
A  tax  by  the  State  of  incorporation  on  bonds  owned  by 
non-residents,  if  kept  outside  the  State,  would  seem  to 
be  invalid  under  the  general  principles  of  taxation,  yet, 
in  most  of  the  States  which  are  taxing  stock  in  domestic 
corporations  owned  by  non-residents,  the  language  of 
the  law  is  broad  enough  to  include  bonds  as  well.  It 
would  not  be  surprising  to  find  almost  any  of  the  States 
that  are  taxing  stock  of  domestic  corporations  owned  by 
non-residents  at  any  time  added  to  the  list  of  those  tax- 
ing registered  bonds  of  non-residents,  especially  Lou- 
isiana, whose  statute  mentions  registered  bonds.  There 
are  even  signs  of  an  effort  in  some  States  to  reach  coupon 
bonds  as  well. 

Coupon  bonds  are  much  better  than  registered  bonds 
in  this  respect,  however.  We  know  of  one  large  estate, 
the  property  of  which  consisted  mostly  of  registered 
bonds,  wherein  the  executors  were  forced  to  spend  sev- 
eral thousand  dollars  for  inheritance  taxes  and  lose  much 
valuable  time  in  obtaining  transfers,  when,  if  the  bonds 


12  INHERITANCE  TAXES 

had  been  coupon  bonds,  they  could  have  been  trans- 
ferred at  once  without  trouble  or  expense. 

The  number  of  these  unfair  States  has,  however,  been 
materially  reduced  during  the  last  few  years,  as  a  com- 
parison of  the  accompanying  table  with  that  printed  in 
the  first  edition  of  this  book,  will  show. 

Several  States  have  recently  been  claiming  an  inherit- 
ance tax  on  stock  of  non-residents  in  corporations  which 
are  not  even  organized  under  their  laws,  but  which  own 
property  within  the  State.  We  believe  such  a  tax  to  be 
clearly  void,  as  has  already  been  decided  in  Massachu- 
setts x  and  in  Illinois,2  and  we  assume  will  be  so  held 
in  any  other  State  where  the  question  is  presented.3 

One  interesting  feature  of  the  situation  of  the  non- 
resident tax  is  the  recent  incorporation  of  a  "ratio  provi- 
sion" in  the  law  in  Maine  (1913),  New  Jersey  (1914), 
Kansas  (1915),  and  Rhode  Island  (1916).  These  provi- 
sions seek  to  make  the  non-resident's  tax  depend  on  the 
proportion  which  his  property  in  the  taxing  State  bears 
to  his  entire  estate.  They  are  subject  to  the  objection 
that  they  make  the  tax  depend  on  the  size  of  the  estate 
outside  of  the  taxing  State,  which  results  in  lack  of  uni- 
formity.4 Such  a  procedure  has  already  been  discoun- 
tenanced in  Massachusetts  and  is  now  the  subject  of 
litigation  in  New  Jersey.  Such  a  provision  leads  to  gro- 
tesque results  when  considered  in  the  light  of  local 
exemptions. 

1  Welch  P.  Burrill,  111  N.E.  774. 
*  State  P.  Dennett,  114  N.E.  423. 
»  Cf.  State  P.  Dunlap,  (Iowa)  156  Pac.  141. 

4  Cf.  a  learned  article  on  this  subject  by  Joseph  F.  McCloy,  Esq.,  in 
the  Trust  Companies  Magazine,  December,  1916. 

5  See  post,  pp.  51,  64.  See  also  Arkansas  law,  post,  p.  21;  Attorney- 
General  v.  Barney,  211  Mass.  134. 


CHAPTER  V 

SOME  GENERAL  RULES  —  HARDSHIPS  ON 
NON-RESIDENTS  IN  ADMINISTERING  THE  LAW 

BEFORE  proceeding  to  examine  the  laws  and  practice 
of  the  individual  States,  it  may  be  useful  to  summarize 
the  rules  which  may  be  taken  to  be  of  general  applica- 
tion, unless  exceptions  are  specially  noted.  The  prop- 
erty subject  to  tax  under  the  inheritance  tax  laws  of  any 
State  can  be  classified  as  follows:  — 

Residents  — 

Real  estate  within  the  State  (but  not  real  estate  outside 
the  State). 

Personal  property  of  every  description,  tangible  or  intan- 
gible whether  held  within  or  without  the  State. 
Non-residents  — 

Real  estate  within  the  State. 

Tangible  personal  property  within  the  State. 

Stocks  or  bonds  in  corporations  organized  under  the 
laws  of  the  State. 

The  States  that  tax  stock  in  domestic  corporations 
owned  by  non-residents  usually  tax  shares  in  national 
banks  doing  business  within  the  State  as  well.  This  tax 
can  hardly  be  justified  on  the  ground  that  the  bank  is  a 
creature  of  the  State.  Bank  deposits  of  non-residents 
are  similarly  treated. 

The  personal  property  of  a  resident  which  is  held  out- 
side of  the  State  is  taxed  on  the  theory  that  personal 
property  follows  the  domicile  of  its  owner.  The  intangi- 
ble personal  property  of  a  non-resident  actually  or 
theoretically  within  the  State  is  taxed  because  it  can 
be;  so  why  bother  with  theories? 


14  INHERITANCE  TAXES 

Where  a  non-resident  keeps  securities  in  the  State, 
as  in  a  safe-deposit  vault,  there  is  a  distinction  made 
between  stocks  and  bonds.  The  more  common  practice 
is  to  tax  all  such  bonds,  whether  they  are  bonds  of  do- 
mestic or  foreign  corporations,  but  the  common  rule  is 
not  to  tax  certificates  of  stock  of  a  foreign  corporation 
so  kept  by  a  non-resident  within  the  State.  A  conspicu- 
ous exception  is  found  in  the  case  of  Pennsylvania, 
which  very  properly  does  not  tax  the  intangible  personal 
property  of  a  non-resident  kept  within  the  State, 
whether  in  the  form  of  stocks  or  bonds. 

Laws  are  being  rapidly  enacted  throughout  the  coun- 
try forbidding  any  safe-deposit  company  or  other  bailee 
from  giving  up  possession  of  securities  of  a  decedent  till 
after  the  taxing  authorities  have  had  an  opportunity  to 
examine  them,  and  these  laws  are  constitutional.1  A 
New  York  court  has,  however,  recently  held  that  the 
safe-deposit  company  has  no  control  of  securities  in 
rented  boxes  and  cannot  enforce  the  law.2 

Another  popular  innovation,  especially  in  our  Western 
States,  is  a  requirement  of  ten  days'  notice  to  the  taxing 
authorities  before  transfer  of  stocks  or  other  securities. 

The  common  practice  of  requiring  non-resident  execu- 
tors and  administrators  to  file  complete  inventories, 
copies  of  probate  records,  and  other  similar  documents 
before  consent  is  given  to  the  transfer  of  stock  may  be 
a  source  of  considerable  expense  as  well  as  annoyance. 
We  hear  of  an  English  estate  owning  stocks  to  the  value 
of  $4180  in  Illinois  Central  (Illinois  corporation),  Chi- 
cago, St.  Paul,  Minneapolis  &  Omaha  (Wisconsin  cor- 
poration), and  Long  Island  Railroad  (New  York  cor- 

1  National  Safe  Deposit  Co.  e.  Stead,  232  U.S.  58. 

J  Glynn  c.  Mercantile  Safe  Deposit  Co.,  143  N.Y.S.  849. 


INHERITANCE  TAXES  15 

poration).  In  getting  these  securities  transferred  the 
expenses  amounted  to  between  $125  and  $150,  irrespec- 
tive of  the  inheritance  taxes. 

Another  vexatious  and  unnecessary  burden  on  non- 
residents is  the  requirement  that  the  executor  or  ad- 
ministrator of  a  non-resident  decedent  shall  take  out 
ancillary  probate  in  the  State  no  matter  how  small  the 
transfer  that  is  desired.  This  often  means  attorneys' 
and  court  fees  —  as  in  Michigan  —  far  in  excess  of  the 
tax  involved.  The  practice  is  not  followed,  however,  in 
most  States. 

In  the  case  of  non-residents  the  practice  varies  as  to 
the  application  of  exemptions.  In  some  States  the  entire 
amount  of  the  inheritance  must  be  considered  in  decid- 
ing whether  it  is  exempt,  and  not  merely  the  portion  of 
the  property  taxable  in  the  State.  In  other  States  the 
exemption  is  apportioned  according  to  the  amount  of 
property  in  the  State  as  compared  to  the  whole  inherit- 
ance; *  while  some  States  claim  no  tax  if  the  portion  of 
the  inheritance  subject  to  their  jurisdiction  does  not 
exceed  their  exemption. 

The  claim  of  some  States  to  a  tax  on  shares  of  corpo- 
rations organized  elsewhere,  but  owning  property  within 
the  State,  may  often  be  of  only  academic  interest  to  a 
non-resident  investor.  A  Boston  estate  has  stock  of  a 
New  Jersey  corporation  owning  property  in  Iowa.  Iowa 
claims  an  inheritance  tax  on  such  stock  as  well  as  Massa- 
chusetts and  New  Jersey.  Unless  this  estate  owns  other 
property  in  Iowa  or  stock  in  some  corporation  organized 
under  Iowa  laws,  Iowa  would  have  some  difficulty  in 
enforcing  the  claim.  This  sort  of  tax  is  successfully  en- 
forced where  the  tax  authorities  require  a  complete 
1  See  ante,  pp.  7,  8. 


16 

inventory  of  the  estate  when  a  non-resident  presents 
stock  for  transfer.  Then  the  State  is  in  a  position  to 
collect  almost  any  tax  it  chooses  to  claim  by  holding  up 
the  transfer  until  it  is  paid.  The  tax  is,  however,  clearly 
illegal.1 

It  is  not  uncommon  to  find  estates  passing  to  direct 
heirs  little  troubled  by  inheritance  taxes  of  other  States. 
As  has  already  been  pointed  out,  the  exemption  usually 
applies  to  the  interest  of  each  heir,  not  merely  to  the 
estate  as  a  whole.  An  estate  of  a  man  with  several  chil- 
dren is  thus  often  in  a  better  position  than  the  estate  of 
a  man  with  a  single  child. 

The  multiplication  of  inheritance  taxes  imposes  a  very 
real  burden  on  collateral  inheritances.  With  the  usual 
exemption  limited  to  five  hundred  dollars,  and  five  per 
cent,  the  minimum  rate,  the  collateral  relative  who  re- 
ceives a  bequest  of  even  ten  shares  of  any  ordinary  in- 
vestment stock  is  likely  to  pay  at  least  ten  per  cent  in 
inheritance  taxes. 

There  is  little  question  but  that  the  States  with  strin- 
gent inheritance  tax  laws  affecting  non-residents  will  lose 
in  the  end.  Such  laws  will  certainly  tend  to  drive  out- 
side capital  from  the  State.  The  strong  demand  by  local 
investors  for  stock  in  Massachusetts  corporations  is  not 
wholly  due  to  their  exemption  from  current  taxation. 
The  assurance  that  only  one  inheritance  tax  can  be  col- 
lected on  such  stock  is  an  element  of  attractiveness  to 
the  careful  investor.  This  holds  true  of  the  local  securi- 
ties in  every  State,  and  the  experience  of  New  York 
under  its  drastic  statute  2  should  prove  a  warning  to 
other  States. 

1  See  ante,  p.  12.  *  See  post,  p.  67. 


CHAPTER  VI 

THE  STATES  WHICH  HAVE  NO  INHERITANCE  TAX 
LAW 

THERE  are  no  inheritance  tax  laws  in  the  following 
jurisdictions:  — 

Alabama  Mississippi 

Alaska  New  Mexico 

Florida  South  Carolina 

District  of  Columbia 

The  estates  of  residents  of  these  States  pay  no  inherit- 
ance taxes  except  such  as  other  States  may  be  able  to 
extract.  Estates  of  non-residents  are  not  called  upon 
to  pay  a  double  tax  on  corporations  organized  under 
their  laws. 

It  will  be  noted  that  four  of  these  States  are  in  the 
South,  a  portion  of  the  country  which  has  been  very 
conservative  in  inheritance  tax  legislation. 

1.  ALABAMA 

Alabama  had  a  collateral  inheritance  tax  on  personal 
property  only  from  1848  to  1868.  The  constitution  of 
1901  forbids  a  direct  inheritance  tax,  and  limits  any  col- 
lateral inheritance  tax  that  may  be  enacted  to  two  and 
one  hah*  per  cent.  No  inheritance  tax  law  has  been 
enacted  since  the  adoption  of  this  constitution. 

2.  DISTRICT  OF  COLUMBIA 

There  is  no  inheritance  tax  in  the  District  of  Colum- 
bia, although  efforts  have  been  made  to  pass  one. 


18  INHERITANCE  TAXES 

3.  FLORIDA 

Florida  has  no  inheritance  tax  and  has  never  had  an 
inheritance  tax  law. 

4.  MISSISSIPPI 

5.  NEW  MEXICO 

6.  SOUTH  CAROLINA 

These  three  States  have  no  inheritance  tax  law  and 
have  never  had  any  inheritance  tax  law. 

There  are  no  companies,  organized  under  the  laws  of 
any  of  them,  whose  securities  are  of  general  investment 
importance  to  non-residents.  The  large  companies  doing 
business  in  these  States  are  usually  incorporated  under 
the  laws  of  other  States. 


CHAPTER  VII 
THE  STATES  WHICH  HAVE  INHERITANCE  TAX  LAWS 

1.  ARIZONA 

ARIZONA,  on  becoming  a  State,  was  very  quick  to 
assert  its  privileges  by  passing  a  complete  inheritance 
tax  *  with  a  unique  system  of  rates  and  exemptions. 

The  following  taxes  are  imposed:  — 

To  grandparent,  parent,  husband,  wife,  child, 
brother,  sister,  wife  or  widow  of  a  son  or  hus- 
band of  a  daughter,  or  to  any  child  adopted  or 
mutually  acknowledged  as  such  or  to  any  lineal 

descendant 1% 

In  above  cases  estate  valued  at  less  than 
$10,000  is  not  subject  to  tax,  and  tax  is 
levied  only  on  excess  above  $5000  received 
by  each  person. 

To  uncle,  aunt,  niece,  nephew,  or  any  lineal  de- 
scendant of  the  same 2% 

In  above  cases  estate  valued  at  less  than 
$5000  is  not  subject  to  tax,  and  tax  is 
levied  only  on  excess  above  $2000  received 
by  each  person. 

In  all  other  cases  — 

Not  exceeding  $10,000 3% 

$10,000  to  $20,000 4% 

20,000  to    50,000 5% 

Exceeding    50,000 6% 

Estate  valued  at  less  than  $500  is  not  subject 
to  tax;  tax  is  levied  only  when  the  amount 
received  by  a  person  amounts  to  $500  or 
more. 

1  St.  1912.  Special  Session,  c.  15. 


20  INHERITANCE  TAXES 

The  State  is  collecting  a  tax  on  the  stock  of  domestic 
corporations  owned  by  non-residents  and  on  stock  of 
foreign  corporations  owning  property  in  the  State  and 
on  real  estate  in  the  State  belonging  to  non-residents. 
The  representative  of  a  non-resident  decedent  is  obliged 
to  make  affidavit  showing  the  total  assets  and  debts  and 
expenses  of  the  estate  and  details  of  the  beneficiaries, 
but  need  not  file  an  inventory  of  the  whole  estate. 

2.  ARKANSAS 

AN  EXAMPLE  OF  UNFAIRNESS 

Arkansas  adopted  a  collateral  inheritance  tax  in  1901 
and  extended  the  tax  to  direct  inheritances  in  1907. 
The  statute  was  entirely  redrafted  in  1913  l  for  the  pur- 
pose of  readjusting  the  progressive  rates  substantially 
in  accordance  with  the  Wisconsin  law. 
The  following  taxes  are  imposed:  — 

To  widow  2  or  minor  child  — 

Not  exceeding  $3000 exempt 

$     3000  to  $        5000 1% 

5000  to         10,000 2% 

10,000  to         30,000 3% 

30,000  to         50,000 4% 

50,000  to       100,000 5% 

100,000  to       500,000 6% 

500,000  to    1,000,000 7% 

Exceeding      1,000,000 8% 

To  parent,  husband,  wife,  child,  brother,  sister, 
wife  or  widow  of  son,  or  husband  of  daughter,  or 
child  adopted  or  mutually  acknowledged,  or  to 
any  lineal  descendant  of  decedent  — 

1  St  1913,  c.  197. 

1  A  widow's  dower  is  not  taxable.  McDaniel  t.  Byrkett,  179  S.W. 
491. 


INHERITANCE  TAXES  21 

Not  exceeding  $1000 exempt 

$     1000  to  $        5000 1% 

5000  to         10,000 2% 

10,000  to         30,000 3% 

30,000  to         50,000 4% 

50,000  to       100,000 5% 

100,000  to       500,000 6% 

500,000  to    1,000,000 7% 

Exceeding      1,000,000 8% 

To  all  others  — 

Not  exceeding  $500 exempt 

$       500  to  $         5000 3% 

5000  to    10,000 6% 

10,000  to    30,000 9% 

30,000  to    50,000 12% 

50,000  to   100,000 15% 

100,000  to   500,000 18% 

500,000  to  1,000,000 21% 

Exceeding      1,000,000 24% 

Friends  of  tax  reform  may  well  grieve  over  the  tend- 
encies shown  in  the  amendment  of  1915, 1  whereby  stock 
and  even  bonds  of  foreign  corporations  belonging  to 
non-resident  decedents  are  subject  to  the  inheritance 
tax  when  the  corporations  own  property  in  the  State, 
although  the  new  act  does  provide,  as  a  concession  to 
fairness,  that  the  stock  or  bonds  shall  be  valued  at  that 
proportion  of  the  true  value  which  the  physical  property 
of  such  corporation  located  in  the  State  bears  to  the  total 
physical  property  of  the  corporation.  This  provision 
seems  aimed  at  mining  and  irrigation  companies  operat- 
ing in  the  State. 

An  amendment  in  1915 2  contains  the  curious  provi- 
sion that  if  the  assessment  of  the  tax  would  leave  sums 

1  St.  1915,  c.  231,  §  1. 

2  St.  1915,  c.  231,  §  2.  As  to  figuring  exemptions  under  the  act  of 
1909  see  McDaniel  ».  Herrn,  179  S.W.  337. 


22  INHERITANCE  TAXES 

equal  to  or  in  excess  of  the  exemptions,  the  tax  shall  be 
paid  on  the  value  of  the  entire  estate  without  deducting 
the  exemption. 

The  new  law  holds  responsible  for  the  collection  of 
the  tax  not  only  Arkansas  corporations  transferring 
their  own  stock,  but  also  any  safe-deposit  company,  cor- 
poration, bank,  or  other  institution,  person,  or  corpora- 
tion having  in  possession  or  control  securities,  deposits, 
or  other  assets  of  a  decedent. 


3.  CALIFORNIA 
A  NEAR  APPROACH  TO  CONFISCATION 

California  adopted  a  collateral  inheritance  tax  in 
1893, l  following  the  old  New  York  law.  A  direct  inherit- 
ance tax  act  was  passed  in  1905,2  and  amended  in  1909,8 
1911,4  1913,5  and  1915  6  increasing  both  the  progressive 
rates  and  the  exemptions.  The  progressive  rates  are 
levied  in  each  instance  only  on  the  excess  above  the 
amount  taxed  at  the  next  lower  rate. 

The  following  taxes  are  imposed:  — 

Direct  inheritances  including  husband,  wife,  lineal 
issue,  lineal  ancestor,  adopted  child,  mutually 
acknowledged  child  in  certain  cases,  or  issue  of 
such  adopted  or  acknowledged  child  — 

Not  exceeding  $25,000 1% 

$  25,000  to  $      50,000 2% 

50,000  to       100,000 4% 

100,000  to       200,000 7% 

200,000  to       500,000 10% 

500,000  to    1,000,000 12% 

Over  $1,000,000  15% 

1  St.  1893,  c.  168.          *  St.  1905,  c.  314. 

«  St.  1909,  c.  337.         «  St.  1911,  c.  394  and  c.  895. 

B  St.  1913,  c.  595.          «  St.  1915,  c.  189. 


INHERITANCE  TAXES  23 

Exemptions  — 

To  widow  or  minor  child,  $24,000. 
To  any  other  in  above  class,  $10,000. 

Collaterals  including  brother  or  sister  or  their 
descendant,  wife  or  widow  of  a  son  or  husband 
of  a  daughter  — 

Not  exceeding  $25,000 3% 

$  25,000  to  $      50,000 6% 

50,000  to       100,000 9% 

100,000  to       200,000 12% 

200,000  to       500,000 15% 

500,000  to    1,000,000 20% 

Over  $1,000,000 *. . .   25% 

Exemption,  $2000. 

To  brother  or  sister  of  father  or  mother  or  descend- 
ant of  such  brother  or  sister  — 

Not  exceeding  $25,000 4% 

$  25,000  to  $      50,000 8% 

50,000  to       100,000 10% 

100,000  to       200,000 15% 

200,000  to       500,000 20% 

500,000  to    1,000,000 25% 

Over  $1,000,000 30% 

Exemption,  $1000. 

To  any  other  relatives  or  strangers  — 

Not  exceeding  $25,000 5% 

$  25,000  to  $  50,000 10% 

50,000  to    100,000 15% 

100,000  to    200,000 20% 

200,000  to    500,000 25% 

Over  $500,000 30% 

Exemption,  $500. 

The  exemptions  apply  to  each  individual  share,  not  to 
the  estate  as  a  whole. 

The  Supreme  Court  of  California  has  decided  that  the 
tax  is  on  the  excess  over  the  exemption,  not,  as  in  many 


24  INHERITANCE  TAXES 

States,  on  the  entire  inheritance  if  it  exceeds  the  exemp- 
tion.1 The  exemption,  however,  does  not  affect  the 
computation  of  the  progressive  rates,  as  it  is  deducted 
from  the  first  $25,000  in  each  distributive  share  and  not 
from  the  distributive  share  as  a  whole.  So  if  a  benefi- 
ciary receives  $30,000,  and  the  exemption  is  $10,000,  he 
will  be  taxed  on  $15,000  at  the  primary  rate  and  on 
$5000  at  the  higher  rate.2 

California  taxes  stock  of  a  California  corporation 
owned  by  a  non-resident  at  its  full  value  without  deduc- 
tion for  its  proportion  of  the  debts  and  expenses  of  ad- 
ministration.3 This  is  merely  another  example  of  the 
injustice  of  the  California  law. 

The  State  authorities  contend  that  a  tax  is  due  upon 
stock  of  foreign  corporations  owning  property  in  the 
State,  but  there  has  been  no  decision  of  the  Supreme 
Court  on  the  subject.4  Real  estate  in  the  State  belonging 
to  a  non-resident  decedent  is  subject  to  tax.  Bonds  of  a 
non-resident,  temporarily  in  the  State  at  his  death,  are 
not  for  that  reason  taxable,5  but  the  State  is  levying  a 
tax  on  bonds  of  California  corporations  owned  by  non- 
resident decedents. 

Corporations  and  individuals  delivering  or  transferring 
certificates  or  assets  of  a  non-resident  estate  are  responsi- 
ble for  the  tax.  It  is  not  the  practice  to  require  a  com- 
plete inventory  of  a  non-resident's  estate.  A  representa- 
tive of  such  estate  must  file  an  affidavit  showing  facts 
concerning  residence  and  date  of  death  of  decedent,  the 
value  and  items  of  his  California  property,  data  con- 

1  In  re  Bull's  Estate,  153  Cal.  715;  In  re  Timken's  Estate,  158 
Cal.  51. 

1  See  Blakemore  and  Bancroft  on  Inheritance  Taxes,  p.  325. 
1  McDougal  v.  Low,  127  Pac.  1027.  «  See  ante,  p.  12. 

6  In  re  McCahffl's  Estate,  153  Pac.  930. 


INHERITANCE  TAXES  25 

cerning  the  beneficiaries  and  as  to  whether  decedent 
had  made  transfers  of  his  property  in  contemplation  of 
death. 

4.  COLORADO 

Colorado  enacted  an  inheritance  tax  in  1901,1  amended 
in  1902,2  using  the  Illinois  statute  of  1895  as  a  model.  It 
was  radically  amended  in  1909 3  and  1913.4 

The  following  taxes  are  imposed :  — 

Direct  inheritances  including  father,  mother,  hus- 
band, wife,  child,  brother,  sister,  wife  or  widow 
of  a  son  or  husband  of  a  daughter  or  adopted 
child  in  certain  cases  or  any  lineal  descendant 
of  the  decedent  — 

Under  $10,000  only  if  the  share  is  in  perpe- 
tuity     exempt 

Not  exceeding  $100,000 2% 

$100,000  to  $200,000 3% 

Exceeding      200,000 4% 

Collateral  inheritances,  including  uncle,  aunt, 
nephew,  niece  or  any  lineal  descendant  of  the 
same  — 

Not  exceeding  $20,000 3% 

$20,000  to  $  50,000 4% 

50,000  to    100,000 5% 

Exceeding  $100,000 6% 

In  all  other  cases  — 

Not  exceeding  $10,000 4% 

$10,000  to  $  20,000 5% 

20,000  to      50,000 6% 

50,000  to    100,000 8% 

Exceeding  $100,000 10% 

Exemption  in  all  cases  except  direct  inherit- 
ances, $500.   If,  however,  amount  exceeds 
),  tax  is  charged  on  the  full  amount. 


1  St.  1901,  c.  94. 

*  St.  1902,  c.  3,  held  constitutional  in  In  re  Magnes,  32  Colo.  527. 

8  St.  1909,  c.  193.  «  St.  1913,  c.  136. 


26  INHERITANCE  TAXES 

Colorado  taxes  stock  owned  by  a  non-resident  in  a 
Colorado  corporation  or  in  a  foreign  corporation  also 
incorporated  in  the  State,  or  where  articles  of  incorpora- 
tion are  filed  or  it  is  doing  business  in  the  State  having 
general  or  transfer  offices  or  property  in  the  State.  The 
tax  is  also  figured  upon  all  bonds,  mortgages,  or  securi- 
ties, or  interest  in  any  such  corporation  secured  upon 
property  or  franchises  in  the  State. 

The  exemptions  are  figured  on  the  share  of  each  bene- 
ficiary. The  State  does  not  prorate  the  exemption  in 
cases  of  non- resident  decedents,  but  allows  the  full  ex- 
emption to  each.  The  State  claims  and  collects  a  tax 
on  real  estate  situated  in  Colorado  belonging  to  a  non- 
resident decedent. 

Executors,  administrators,  and  trustees  are  bound  to 
pay  the  tax  before  transfer  of  property.  A  provision, 
which  has  become  very  popular  recently,  requires  any 
corporation  or  individual  about  to  transfer  property  to 
give  ten  days'  notice  to  the  Attorney-General  of  the  time 
and  place  of  the  transfer.  The  representatives  of  the 
estates  of  decedents  are  required  to  file  complete  inven- 
tories of  all  their  property  wherever  situated. 

5.  CONNECTICUT 

A  STATE  WHICH  HAS  ABOLISHED  DOUBLE  TAXATION 
OF  PROPERTY  OF  NON-RESIDENTS 

Connecticut  adopted  a  collateral  inheritance  tax  in 
1889  and  extended  it  to  direct  heirs  in  1897.  The  State 
Supreme  Court  decided  that  the  personal  property  of  a 
non-resident  was  not  taxable  under  this  statute,  but  that 
the  law  as  amended  in  1903  included  such  property.1 

1  Gallup 's  Appeal,  76  Conn.  617.  As  to  constitutionality  see  Net- 
tleton's  Appeal,  76  Conn.  235;  Hopkins'  Appeal,  77  Conn.  644. 


INHERITANCE  TAXES  27 

There  were  important  revisions  in  1907  and  1909,  and 
in  1913  an  entirely  new  act1  was  passed  abolishing  en- 
tirely the  taxation  of  intangible  property  of  the  estates 
of  non-resident  decedents  and  avoiding  double  taxation 
of  such  property.  This  State,  therefore,  now  claims  no 
tax  on  the  transfer  of  stock  in  Connecticut  corporations 
owned  by  non-residents. 

Mr.  Corbin,  the  very  able  Tax  Commissioner  of  the 
State,  complained  very  vigorously  in  his  biennial  report 
for  1913-14  that  this  law  was  hastily  drawn;  that  the 
rates  were  too  low  and  the  exemptions  too  high,  with  the 
result  that  the  receipts  from  inheritance  taxes  since  1911 
had  declined  forty  per  cent.  He  also  complained  of  the 
system  of  having  the  law  administered  and  appraisals 
made  under  the  direction  of  the  one  hundred  and  thir- 
teen probate  judges  in  the  State,  and  advocated  a  central 
administration  like  that  in  Massachusetts,  New  York, 
and  other  States.  As  a  result  the  Legislature  passed  a 
new  law  in  1915  2  materially  increasing  the  rates  and 
reducing  the  exemptions,  and  giving  the  tax  commis- 
sioners power  to  institute  proceedings  in  the  Probate 
Courts  to  fix  the  tax. 

The  following  taxes  are  imposed: 3  — 

Direct  inheritances,  including  those  to  parent, 
grandparent,  wife,  lineal  descendant,  adopted 
child  or  his  lineal  descendant,  and  adopting 
parent  — 

Not  exceeding  $10,000 exempt 

$  10,000  to  $     50,000 1% 

50,000  to       250,000 2% 

250,000  to    1,000,000 3% 

Over  $1,000,000 4% 

1  St.  1913,  c.  231.         *  St.  1915,  c.  832.         »  St.  1915,  c.  332. 


28  INHERITANCE  TAXES 

Collaterals,  including  husband  or  wife  of  child  of 
decedent,  stepchild,  brother  or  sister  of  full  or 
half  blood,  or  any  descendant  of  such  brother 
or  sister  — 

Not  exceeding  $3000 exempt 

$      3000  to  $      25,000 3% 

25,000  to         50,000 5% 

50,000  to       250,000 6% 

250,000  to    1,000,000 7% 

Exceeding    $1,000,000 8% 

All  others  — 

Not  exceeding  $500 exempt 

$       500  to  $     50,000 5% 

50,000  to       250,000 6% 

250,000  to    1,000,000 7% 

Over  $1,000,000 8% 

The  law  contains  a  provision,  not  found  in  any  other 
State  we  believe,  that  only  one  exemption  for  each  class 
shall  apply  to  the  net  estate  passing  to  all  beneficiaries 
in  that  class.  In  the  case  of  the  estates  of  non-resident 
decedents,  leaving  real  estate  or  tangible  personal  prop- 
erty in  the  State,  only  such  percentage  of  the  exemptions 
shall  apply  as  the  estate  in  Connecticut  is  of  the  entire 
estate. 

The  act  of  1913  provided  that  any  person  or  corpora- 
tion that  transfers  or  delivers  any  taxable  property  of  a 
non-resident  without  the  permission  of  the  Tax  Com- 
missioners is  subject  to  a  penalty  of  three  times  the 
amount  of  the  tax.  This  clause  is  not  incorporated  in 
the  act  of  1915,  but  as  the  act  of  1913  is  not  expressly 
repealed  it  would  seem  to  be  still  in  effect. 

The  representatives  of  non-resident  decedents  are  re- 
quired to  furnish  the  Tax  Commissioner  the  following  in- 
formation: An  inventory  of  all  property  in  Connecticut; 
a  certified  copy  of  the  appointment  of  the  executor  or 


INHERITANCE  TAXES  29 

administrator;  a  certified  copy  of  the  detailed  inventory 
of  the  estate  wherever  situated;  and  the  name,  relation- 
ship to  the  decedent,  and  amount  each  beneficiary 
other  than  lineals  receives  of  the  property  actually  or 
constructively  in  the  State  of  Connecticut. 

6.  DELAWARE 

Delaware  adopted  a  collateral  inheritance  tax  in  1869. l 
In  18832  its  application  was  limited  to  strangers  in 
blood.  In  1909 3  the  present  act  was  adopted,  and  was 
slightly  amended  as  to  relatives  of  the  half  blood  in 
1913.4 

The  following  taxes  are  imposed:  — 

Direct  inheritances exempt 

(to  parents,  grandparents,  husband,  wife,  child, 
adopted  child  or  lineal  descendant) 

Brother,  sister  of  the  whole  or  half  blood,  and  de- 
scendant of  brother  or  sister 1% 

Brother  or  sister  of  father  or  mother  and  their 
descendants 2% 

Brother  or  sister  of  grandfather  or  grandmother 
and  their  descendants 3% 

More  distant  collateral  relations  and  strangers  in 
blood 5% 

The  exemption  is  $500  and  applies  to  individual 
shares.  Where  the  value  of  the  interest  passing  exceeds 
$500,  only  the  excess  is  subject  to  tax. 

No  tax  is  now  claimed  on  stock  of  Delaware  corpora- 
tions owned  by  non-resident  decedents,  but  no  investor 
should  rely  on  this  practice,  as  the  Delaware  statute 

1  Del.  St.  vol.  13,  c.  390.  2  Del.  St.  vol.  17.  c.  8,  11. 

8  St.  1909,  c.  225,  p.  514. 

*  St.  1913,  c.  269.  The  present  act  is  contained  in  Del.  Rev.  St.  of 
1915,  §§  146-152. 


30  INHERITANCE  TAXES 

seems  to  furnish  ample  authority  for  such  a  tax  and  is 
in  fact  identical  with  other  statutes  —  that  of  New 
Hampshire,  for  example  —  where  such  a  tax  has  been 
exacted. 

The  reason  given  for  the  Delaware  position  is  that 
stocks  and  bonds  of  corporations  are  exempt  from  taxa- 
tion in  Delaware.  But  if  their  tax  is,  like  other  inherit- 
ance taxes,  a  tax  on  the  transfer  and  not  on  property, 
this  makes  no  difference.1  There  seems  to  be  as  yet  no 
judicial  decision  in  Delaware  on  the  question. 

7.  GEORGIA 

Georgia  is  one  of  the  most  recent  States  to  fall  in  line 
by  enacting  an  inheritance  tax  in  1913 2  of  a  very  fair 
and  moderate  nature. 

The  following  taxes  are  imposed:  — 

Parents,  husband,  wife,  child,  brother,  sister,  wife  or 
widow  of  a  son,  adopted  child  or  lineal  descendant    1% 
Exemption,  $5000,  the  tax  being  imposed 

only  on  the  excess  over  the  exemption. 
The  exemption  is  figured  on  each  individual 
interest  and  not  on  the  entire  estate. 

All  other  relatives  and  strangers  (with  no  exemp- 
tion)       5% 

We  are  advised  by  the  Comptroller-General  that  the 
act  is  confined  in  its  operation  to  property  within  the 
jurisdiction  of  the  State;  that  property  passing  by  will 
of  a  non-resident  to  a  citizen  of  Georgia  would  not  be 
subject  to  the  tax,  but  property  in  Georgia  passing  to 
a  non-resident  would  be.  Hence  stock  owned  by  non- 
resident decedents  in  Georgia  corporations  is  subject 

1  See  Blakemore  and  Bancroft  on  Inheritance  Taxes,  §§9,  264. 
8  St.  1913,  No.  259,  p.  91. 


INHERITANCE  TAXES  31 

to  the  tax,  but  the  State  is  not  now  collecting  a  tax  on 
registered  bonds  issued  by  Georgia  corporations  owned 
by  non-residents. 

Executors  are  required  to  file  an  inventory  of  taxable 
property  in  the  Court  of  Ordinary  having  jurisdiction 
within  three  months  of  appointment,  under  a  penalty 
not  to  exceed  $1000! 

The  act  has  been  sustained  as  a  tax  on  a  privilege  and 
not  on  property.1 

8.  IDAHO 

Idaho  in  1907  copied  the  former  California  law  almost 
verbatim. 
The  following  taxes  are  imposed: 2  — 

To  husband,  wife,  lineal  issue,  lineal  ancestor,  child 
adopted  or  mutually  acknowledged  or  any  lineal 
issue  of  such  child  — 

Not  exceeding  $25,000 1% 

$  25,000  to  $  50,000 \\% 

50,000  to    100,000 2% 

100,000  to    500,000 2^% 

Exceeding      500,000 8% 

Exemptions  — 

To  widow  or  minor  child,  $10,000. 
To  all  others  in  above  class,  $4000. 

To  brother  or  sister  or  descendant  of  same,  wife  or 
widow  of  son  or  husband  of  daughter  — 
Not  exceeding  $25,000 

$  25,000  to  $  50,000 2|% 

50,000  to    100,000 3% 

100,000  to    500,000 3f% 

Exceeding      500,000 4j% 

Exemption,  $2000. 

1  Martin  c.  Pollock,  87  S.E.  793. 

*  St.  1907,  c.  78.  Idaho  Revised  Code,  Title  10.  c.  5,  §§  1873-1897. 


32  INHERITANCE  TAXES 

To  brother  or  sister  of  father  or  mother  or  descend- 
ant of  such  brother  or  sister  — 

Not  exceeding  $25,000 3% 

$  25,000  to  $  50,000 4$% 

50,000  to    100,000 6% 

100,000  to    500,000 7$% 

Exceeding      500,000 9% 

Exemption,  $1500. 

To  brother  or  sister  of  grandfather  or  grandmother 
or  descendant  of  such  brother  or  sister  — 

Not  exceeding  $25,000 4% 

$  25,000  to  $  50,000 6% 

50,000  to    100,000 8% 

100,000  to    500,000 10% 

Exceeding      500,000 12% 

Exemption,  $1000. 

To  all  others  — 

Not  exceeding  $25,000 5% 

$  25,000  to  $  50,000 1\% 

50,000  to    100,000 10% 

100,000  to    500,000 12$% 

Exceeding      500,000 15% 

Exemption,  $500. 

The  tax  has  been  very  carelessly  enforced  in  the  past 
by  county  officials,  but  the  new  Tax  Commissioners  are 
making  strenuous  efforts  to  enliven  what  has  been  in 
most  counties  of  .the  State  a  dead  letter.  They  even 
claimed  a  tax  on  transfers  of  stock  of  non-residents  in  a 
foreign  corporation  owning  property  in  the  State,  but 
have  been  defeated  before  the  State  Court.1 

The  act  specifically  covers  all  property  within  the 
State  belonging  to  non-residents,  which  would  seem 
to  cover  stock  in  Idaho  corporations  owned  by  non- 
residents. 

1  State  r.  Dunlap,  156  Pac.  1141.  See  also,  ante.  p.  12. 


INHERITANCE  TAXES  33 

The  statute  contains  the  common  provision  holding 
the  corporation  responsible  for  the  tax  if  it  transfers  such 
stock  before  the  inheritance  tax  is  paid. 

9.  ILLINOIS 

Illinois  adopted  a  tax  on  all  kinds  of  inheritances  in 
1895,  which  included  progressive  rates  applying  to  dis- 
tant relatives  and  strangers,  with  a  maximum  of  six 
per  cent.1  The  constitutionality  of  the  statute  was  sus- 
tained in  the  Illinois  Supreme  Court.2  Later  the  ques- 
tion was  raised  in  the  Supreme  Court  of  the  United 
States,  which,  in  a  very  far-reaching  decision,  held  that 
progressive  taxation  and  substantial  exemptions  do  not 
infringe  the  equal  protection  of  the  laws  guaranteed  by 
the  Fourteenth  Amendment.3 

The  following  taxes  are  now  imposed : 4  — 

Direct  inheritances,  including  those  to  father, 
mother,  husband,  wife,  child,  brother,  sister,  wife 
or  widow  of  son,  husband  of  daughter,  adopted 
or  acknowledged  child,  lineal  descendant  — 

Under  $20,000 exempt 

From  $20,000  to  $100,000 1% 

Over  $100,000 2% 

($20,000  is  always  exempt  and  only  the  ex- 
cess over  this  amount  is  taxed.) 

Collateral  inheritances  — 

Inheritances  to  uncle,  aunt,  niece,  nephew  and 
their  lineal  descendants  — 

1  Laws  of  1895,  p.  301. 

1  Kochersperger  v.  Drake,  167  111.  122. 

8  Magoun  v.  Illinois  Trust  &  Savings  Bank,  170  U.S.  283.  See  also 
Billings  v.  Illinois,  188  U.S.  97. 

4  Rev.  Stats.  1909,  c.  120,  §§  366-388;  St.  1909,  p.  311;  St.  1913, 
p.  513;  St.  1915,  p.  572.  The  law  is  valid,  People  v.  Starring,  113 
N.E.  627. 


34  INHERITANCE  TAXES 

Under  $2000 exempt 

From  $2000  to  $20,000 2% 

Over  $20,000 4% 

($2000  is  always  exempt  and  only  the  excess 
over  this  amount  is  taxed.) 

All  other  inheritances  — 

Under  $500 exempt 

From  $       500  to  $  10,000 3% 

From       10,000  to      20,000 4% 

From       20,000  to      50,000 5% 

From       50,000  to    100,000 6% 

Over      100,000  10% 

The  exemptions  apply  to  the  individual  shares,  not  to 
the  estate  as  a  whole.  The  exemption  of  $20,000  is  the 
most  liberal  given  to  direct  heirs  in  any  State.  The  rate 
is  figured  on  the  amount  subject  to  tax  above  the  exemp- 
tion. So,  where  the  value  of  property  passing  to  the 
wife  subject  to  the  tax  is  less  than  $100,000,  the  tax  is 
one  per  cent,  although  the  total  value  of  the  property 
received,  including  that  exempt,  exceeds  $1 00,000. l 

A  bank  deposit  of  a  non-resident  in  Illinois,  and  both 
stocks  and  bonds  of  an  Illinois  corporation,  kept  by  a 
non-resident  in  a  safe-deposit  box  in  Illinois,  are  subject 
to  the  inheritance  tax,  but  stocks  and  bonds  of  foreign 
corporations  owned  by  a  non-resident  so  kept  in  a  safe- 
deposit  box  are  not  subject  to  the  tax.2 

Illinois  requires  the  executor  or  administrator  of  a 
non-resident  estate  to  answer,  under  oath,  a  printed  list 
of  questions  before  consent  is  given  to  the  transfer  of 
any  Illinois  stocks;  but  this  does  not  necessarily  involve 
setting  forth  an  inventory  of  the  entire  estate. 

Illinois  taxes  stock  and  bonds  in  Illinois  corporations 

1  In  re  Ullmann's  Estate,  105  N.E.  292. 
*  People  v.  Griffith,  245  111.  532. 


INHERITANCE  TAXES  35 

owned  by  non-residents  wherever  held.  If  the  corpora- 
tion transfers  the  stock  without  notifying  the  tax  au- 
thorities, it  is  made  liable  for  the  tax  and  is  subject  to  a 
penalty  as  well. 

The  State  has  been  collecting  a  tax  where  a  foreign 
corporation  owns  property  in  the  State  and  the  stock 
belonged  to  a  non-resident  decedent,  but  can  hardly  do 
so  in  the  future  in  view  of  a  recent  decision  very  prop- 
erly holding  such  tax  illegal.1 

Local  real  estate  of  non-residents  is  taxable,  but  the 
act  does  not  cover  a  resident's  interest  in  real  estate 
situated  in  another  State.2  A  widow's  award  is  taxable.3 

10.  INDIANA 

Not  until  1913  did  Indiana  at  last  follow  the  exam- 
ple of  other  States  of  the  Middle  West  by  passing  an 
inheritance  tax  law  with  progressive  rates  and  other 
customary  modern  provisions.4 

The  following  taxes  are  imposed:  — 

To  husband,  wife,  lineal  issue,  lineal  ancestor,  child 
adopted  or  mutually  acknowledged,  or  its  lineal 
issue  — 

Not  exceeding  $25,000 1% 

$  25,000  to  $  50,000 \\% 

50,000  to    100,000 2% 

100,000  to    500,000 fj% 

Exceeding      500,000 3% 

Exemptions  — 

To  widow,  $10,000. 

To  others  in  this  class,  $2000. 

1  People  v.  Dennett,  114  N.E.  423,  relying  on  People  v.  Griffith, 
245  111.  532.   See  also  ante,  p.  12. 

2  People  ».  Kellogg,  268  111.  489. 

,  8  People  P.  Forsyth,  112  N.E.  378.  *  St.  1913,  c.  47. 


36  INHERITANCE  TAXES 

To  brother  or  sister  of  decedent  or  descendant  of 
brother  or  sister,  wife  or  widow  of  a  son,  husband 
of  a  daughter  — 

Not  exceeding  $25,000  

$  25,000  to  $  50,000 

50,000  to    100,000 3% 

100,000  to    500,000 3f% 

Exceeding     500,000 4£% 

Exemptions,  $500. 

To  brother  or  sister  of  father  or  mother  or  descend- 
ant of  such  brother  or  sister  — 

Not  exceeding  $25,000 3% 

$  25,000  to  $  50,000 4^% 

50,000  to    100,000 6% 

100,000  to    500,000 7£% 

Exceeding    500,000 9% 

Exemptions,  $250. 

To  brother  or  sister  of  grandfather  or  grandmother 
or  descendant  of  such  brother  or  sister  — 

Not  exceeding  $25,000  4% 

$  25,000  to  $  50,000 6% 

50,000  to    100,000 8% 

100,000  to    500,000 10% 

Exceeding      500,000 12% 

Exemption,  $150. 

To  other  relatives  and  strangers  — 

Not  exceeding  $25,000 5% 

$  25,000  to  $  50,000 1\% 

50,000  to    100,000 10% 

100,000  to    500,000 12|% 

Exceeding      500,000 15% 

Exemption,  $100. 

The  act  follows  the  recent  tendency  to  avoid  double 
taxation  by  limiting  the  tax  to  tangible  property  within 
the  State  of  non-residents,  and  therefore  no  tax  is  claimed 
on  stock  of  Indiana  corporations  owned  by  non-residents 


INHERITANCE  TAXES  37 

or  on  stock  of  foreign  corporations  simply  because  they 
own  property  in  the  State.  A  tax  is,  however,  claimed 
on  real  estate  in  Indiana  belonging  to  non-resident 
decedents.  The  State  authorities  are  courteously  issu- 
ing to  non-resident  executors  a  waiver  with  the  names 
of  the  securities  left  blank  to  facilitate  transfer. 

The  exemptions  are  figured  on  each  share  of  bene- 
ficiaries. 

11.  IOWA 
DISCRIMINATION  AGAINST  THE  NON-RESIDENT 

ALIEN 

Iowa  adopted  a  collateral  inheritance  tax  in  1896, * 
which  has  been  frequently  amended.  The  act  of  1911  2 
compiled  the  existing  law,  which  was  amended  in  1913  3 
by  a  provision  releasing  real  estate  sold  under  order  of 
court.  Inheritances  to  father,  mother,  husband,  wife, 
lineal  descendant,  adopted  child,  or  lineal  descendant  of 
adopted  child  are  exempt. 

The  following  taxes  are  imposed: 4  — 

Collateral  inheritances  — 

Inheritances  to  other  relatives  and  strangers 

except  non-resident  aliens 5% 

Exemption,  $1000. 

Inheritances  to  brothers  or  sisters  who  are  non- 
resident aliens 10% 

Inheritances  to  more  distant  relatives  or  stran- 
gers who  are  non-resident  aliens 20% 

The  exemption  applies  to  the  estate  as  a  whole  rather 
than  to  the  individual  shares.5  The  validity  of  this  dis- 
criminatory tax  against  non-resident  aliens  has  not  been 

1  St.  1896,  c.  28.  2  St.  1911,  c.  68. 

1  St.  1913,  c.  120.  See  also  St.  1913,  c.  121. 
1  St.  1911,  c.  68.  5  Herriott  v.  Bacon,  110  Iowa,  342. 


38  INHERITANCE  TAXES 

passed  upon  by  the  courts,  but  it  would  be  very  surpris- 
ing if  it  should  not  be  held  that  it  is  in  violation  of  most 
of  the  present  treaties  with  the  important  foreign  coun- 
tries.1 

Iowa  taxes  stock  of  an  Iowa  corporation  owned  by  a 
non-resident,2  and  the  corporation  is  held  responsible  for 
the  tax.  The  State  formerly  claimed,  but  is  not  now  col- 
lecting, a  tax  upon  stock  of  a  non-resident  in  a  foreign 
corporation  which  owns  property  in  Iowa. 

The  State,  however,  has  gone  as  far  as  any  in  claiming 
a  tax  on  money  invested  in  the  State.  In  a  recent  case 
a  Florida  woman  loaned  money  on  Iowa  mortgages, 
through  an  Iowa  agent  who  kept  the  notes  and  other  se- 
curities in  Wisconsin,  and  the  court  sustained  the  claim 
of  an  Iowa  inheritance  tax  on  the  ground  that  the 
securities  had  a  "business  situs"  in  Iowa.3 

The  statute  has  recently  been  attacked  and  sustained 
in  a  decision  upholding  the  progressive  rates  and  the 
exemption  of  direct  inheritances.4 

Real  estate  situated  in  the  State  belonging  to  a  non- 
resident decedent  is  subject  to  tax.  Where  a  part  of  the 
estate  goes  to  direct  heirs  and  a  part  to  collateral  and 
no  specific  disposition  is  made,  the  tax  is  apportioned. 
Safe-deposit  companies  and  kindred  institutions  are 
made  liable  for  the  tax  unless  they  notify  the  State  Treas- 
urer before  delivering  over  securities  to  the  representa- 
tive of  an  estate. 

The  form  of  return  now  in  use  calls  for  only  a  list  of 

1  See  In  re  Anderson,  147  N.W.  1098,  where  the  court  holds  this 
provision  not  to  be  in  conflict  with  the  Danish  treaty  of  1857.  It  has 
been  held  void  as  to  English  subjects  (McKeon  v.  Brown,  149  N.W. 
593),  but  good  as  to  Swedes  (In  re  Peterson's  Estate,  151  N.W.  66). 

1  Estate  of  Culver,  123  N.W.  743. 

»  In  re  Adams,  149  N.W.  531.       «  In  re  Peterson,  151  N.W.  66. 


INHERITANCE  TAXES  39 

stock  in  Iowa  corporations,  money  or  securities  within 
the  State,  and  real  estate. 

12.  KANSAS 

Kansas  adopted  a  tax  on  all  inheritances  in  1909, 
which  was,  however,  repealed  in  1913  to  make  way  for 
a  new  law  to  be  passed,  but  the  members  of  the  Legisla- 
ture could  not  agree  on  its  terms  and  adjourned  without 
action.  The  omission  was  remedied  in  19151  by  the 
passage  of  an  act  modeled  in  part  on  the  former  stat- 
ute, omitting,  however,  the  tax  on  direct  inheritances 
and  the  former  reciprocal  provision  to  avoid  double  taxa- 
tion on  the  estates  of  non-residents. 

The  following  taxes  are  imposed:  — 

Inheritances  to  surviving  spouse,  lineal  ancestors, 
lineal  descendants,  adopted  child  or  children  or 
their  lineal  descendants,  wife  or  widow  of  a  son,  or 

husband  of  a  daughter exempt 

Inheritances  to  brothers  and  sisters  of  decedent  — 

Under  $5000 exempt 

On  excess  over  $5000  — 

On  the  first  $25,000 3% 

On  the  second  $25,000 5% 

On  the  next  $50,000 7|% 

On  the  next  $400,000 10% 

On  all  over  $500,000 I*|% 

Inheritances  to  all  other  relatives  and  strangers  — 

On  the  first  $25,000 5% 

On  the  next  $25,000 7^% 

On  the  next  $50,000 10% 

On  the  next  $400,000 12|% 

On  all  over  $500,000   15% 

No  tax  is  imposed  on  any  interest  valued  at 
less  than  $200  after  exemptions  are  al- 
lowed. 

1  St.  1915,  c.  357. 


40  INHERITANCE  TAXES 

It  will  be  noted  that  this  is  a  true  progressive  tax  to 
which  little  constitutional  objection  can  be  made,  as  the 
higher  rate  is  in  each  case  imposed  only  on  the  excess 
over  the  amounts  stated.1 

Kansas  is  collecting  the  tax  on  stock  of  domestic  cor- 
porations owned  by  non-residents,  except  that,  where 
shares  are  held  by  a  domestic  railroad  company,  which 
corporation  is  also  incorporated  in  another  State,  the 
tax  is  divided  according  to  the  mileage  of  the  railroad 
in  the  respective  States.  The  law  also  contains  a  "ratio 
provision"  similar  to  that  in  New  Jersey.2 

The  State  does  not  tax  stock  of  foreign  corporations 
simply  because  they  own  property  in  the  State.  Ex- 
emptions are  allowed  to  individual  beneficiaries  and  are 
deducted  from  their  shares.  Real  estate  in  the  State 
belonging  to  non-residents  is  taxed. 

13.  KENTUCKY 

Kentucky  adopted  a  collateral  inheritance  tax  in 
1906 3  which  remained  unchanged  till  1916,4  when  the 
State  adopted  a  modern  progressive  tax  of  a  drastic 
nature. 

The  new  progressive  rates  are  as  follows:  — 

Direct  inheritances,  including  husband,  wife,  lineal 
issue,  lineal  ancestor,  adopted  child  — 

Not  exceeding  $25,000 1% 

$  25,000  to  $  50,000 l\% 

50,000  to    100,000 2% 

100,000  to    500,000. 2|% 

Exceeding      500,000 3% 

1  It  should  be  noted  that  the  law  of  1909,  of  similar  import  to  that 
of  1915,  has  recently  been  upheld,  though  attacked  as  not  uniform  or 
equal  in  rates  or  exemptions.  State  t>.  Cline,  91  Kan.  416. 

1  See  post,  p.  64.      3  St.  1906,  c.  22.  art.  19.         «  St.  1916,  c.  26. 


INHERITANCE  TAXES  41 

Exemptions  — 

To  widow  and  each  minor  child,  $10,000. 
To  all  others  in  this  class,  $5000  each. 

To  brother,  sister,  or  their  descendants,  widow  of 
son  or  husband  of  daughter  — 

Not  exceeding  $25,000 \\% 

$  25,000  to  $  50,000 *}% 

50,000  to    100,000 3% 

100,000  to    500,000 3f% 

Exceeding      500,000 4f % 

Exemption, 


To  brother  or  sister  of  father  or  mother  or  descend- 
ant of  such  brother  or  sister  — 

Not  exceeding  $25,000 3% 

$  25,000  to  $  50,000 4|% 

50,000  to    100,000 6% 

100,000  to    500,000 1\% 

Exceeding      500,000 9% 

Exemption,  $1500. 

To  brother  or  sister  of  grandfather  or  grandmother 
or  descendant  of  such  brother  or  sister  — 

Not  exceeding  $25,000 4% 

$  25,000  to  $  50,000 6% 

50,000  to    100,000 8% 

100,000  to    500,000 10% 

Exceeding      500,000 12% 

Exemption,  $1000. 

To  other  relatives  or  strangers  — 

Not  exceeding  $25,000 5% 

$  25,000  to  $  50,000 7^% 

50,000  to    100,000 10% 

100,000  to    500,000 12|% 

Exceeding      500,000 15% 

Exemption,  $500. 

The  progressive  rates  are  imposed  only  on  the  excess 
above  the  sum  taxed  at  the  next  lower  rate  and  the 
exemptions  are  deducted  from  the  first  $25,000. 


42  INHERITANCE  TAXES 

The  tax  is  being  levied  on  stock  in  a  Kentucky 
corporation  owned  by  a  non-resident.1  So,  where  a 
Kentucky  trust  company  holds  property  of  a  non- 
resident as  trustee  to  hold  and  manage  for  her  during 
her  life,  the  tax  is  due,2  but  not  simply  because  the 
estate  of  a  non-resident  is  administered  by  an  executor 
who  is  a  resident  of  Kentucky.3 

The  Attorney-General  advises  us,  under  date  of  Feb- 
ruary 17,  1917,  that  he  is  "inclined  to  the  opinion"  that 
the  new  law  of  1916  covers  bonds  of  non-residents  is- 
sued by  Kentucky  corporations  although  there  has  been 
no  decision  as  yet. 

14.  LOUISIANA 

EXEMPTS  PROPERTY  THAT  HAS  BORNE  ITS  SHARE 

OF  TAXATION  —  FORMERLY  DISCRIMINATED 

AGAINST  ALIENS 

Five  States  —  California,  Louisiana,  Iowa,  North 
Dakota,  and  Washington  —  have  at  some  time  dis- 
criminated severely  against  non-resident  aliens.  Such 
tax  has  been  repealed  in  California,  Louisiana,  and 
Washington;  the  attempt  to  revive  it  in  Louisiana  has 
been  found  invalid;  and  it  still  stands  only  in  Iowa 
and  North  Dakota. 

Louisiana  was  the  second  State  to  tax  inheritances. 
This  was  in  the  form  of  a  tax  of  ten  per  cent  imposed  on 
estates  passing  to  non-resident  aliens,  which  was  enacted 
in  1828. 4  This  remained  in  force  until  1877  and  an  at- 
tempt to  revive  it  in  1894  was  declared  void.6 

1  The  former  law  was  held  not  to  apply  to  this  case.  Comm.  p. 
Southern  Pacific  Ry.,  150  Ky.  97. 

2  Barclay  v.  Comm.,  156  Ky.  455. 

»  Comm.  c.  Peebles,  134  Ky.  121.       «  Acts  1828,  No.  95,  §§  1,  2. 
6  Succession  of  Sala,  50  La.  An.  1009. 


INHERITANCE  TAXES  43 

Its  constitutionality  was  sustained  in  the  Supreme 
Court  of  the  United  States,  which  held  that  as  a  State 
has  the  power  to  forbid  an  alien  to  take  any  property 
whatever  situated  within  its  limits,  it  may  impose  any 
tax  it  chooses  as  a  condition  to  allowing  an  alien  to  suc- 
ceed to  property.1  The  Supreme  Court  of  the  United 
States  also  held  that  the  statute  did  not  conflict  with  a 
treaty  with  Wiirttemberg  which  had  evidently  been  in- 
tended to  secure  equal  treatment  for  aliens  and  residents.2 
Yet  the  Louisiana  Supreme  Court  decided  that  the  stat- 
ute conflicted  with  a  similar  treaty  with  France  and  so 
could  not  apply  to  French  citizens.3 

The  constitution  of  1898  authorizes  a  direct  inherit- 
ance tax  of  not  over  three  per  cent  with  a  minimum 
exemption  of  $10,000,  and  a  collateral  inheritance  tax 
of  not  over  ten  per  cent.4 

The  next  article  of  the  constitution  is  as  follows :  "The 
tax  provided  for  in  the  preceding  article  shall  not  be  en- 
forced when  the  property  donated  or  inherited  shall  have 
borne  its  just  proportion  of  taxes  prior  to  the  time  of 
such  donation  or  inheritance."  5  It  is  a  stock  argument 
in  defence  of  an  inheritance  tax  that  it  reaches  much 
property  that  has  escaped  taxation  during  the  owner's 
lifetime,  without  considering  that  it  equally  reaches 
property  that  has  not  escaped.  Louisiana,  by  exempting 
property  that  has  borne  its  proper  burden,  is  the  only 
State  in  the  country  that  is  honest  in  this  respect.6  One 

1  Mager  v.  Grima,  8  How.  490. 

2  Frederickson  v.  Louisiana,  23  How.  445. 
8  Succession  of  Dufour,  10  La.  An.  391. 

4  La.  Const.,  Art.  235.  *  La.  Const.,  Art.  236. 

8  But  see  Succession  of  Kohn,  115  La.  An.  71,  holding  that  the 
taxation  of  corporate  stock  franchises  and  property  is  not  a  taxation 
of  the  shares  held  by  individual  shareholders,  and  therefore  these 


44  INHERITANCE  TAXES 

result  of  this  provision  is  that  no  inheritance  tax  is  fig- 
ured on  real  estate  on  which  the  local  annual  taxes  have 
been  paid. 

The  present  law  was  adopted  in  1904,  and  modified  in 
1906,  1912,  and  1914.  The  amendment  of  1912  classi- 
fied the  surviving  husband  or  wife  of  the  decedent  with 
direct  descendants.1 

The  following  taxes  are  imposed:2  — 

Direct  inheritances,  including  those  to  direct  de- 
scendants and  direct  ascendants  and  surviving 

husband  or  wife 2% 

Exemption,  $10,000. 

Collateral  inheritances,  including  collateral  rela- 
tions and  strangers 5% 

No  exemption. 

The  exemption  applies  to  the  individual  shares,  not  to 
the  estate  as  a  whole,  but  if  the  share  exceeds  the  ex- 
emption it  is  subject  to  the  tax,  not  only  for  the  excess, 
but  on  the  whole  amount. 

An  amendment  to  the  constitution  authorizing  a  pro- 
gressive tax  was  rejected  by  the  voters  in  1912.3 

We  are  informed  that  Louisiana  is  taxing  stock  of  a 
Louisiana  corporation  owned  by  a  non-resident  and  also 
stock  of  foreign  corporations  owning  property  in  Lou- 
isiana. The  statute  provides  that  no  bank  having 
money  or  securities  shall  turn  them  over,  and  no  corpora- 
tion, the  stock  or  registered  bonds  of  which  are  owned 
by  the  deceased,  shall  deliver  or  transfer  the  same  to  any 
heir  until  the  tax  is  paid.4 

shares  are  not  exempt  from  the  operation  of  the  inheritance  tax  law 
of  1904. 

1  St.  1912,  c.  42. 

•  St.  1904,  c.  45;  St.  1906,  c.  109;  St.  1912,  c.  42. 

•  St.  1912,  c.  12,  Extra  Session,  Art.  ra,  7.        «  St.  1914,  c.  301. 


INHERITANCE  TAXES  45 

15.  MAINE 

Maine  began  to  tax  collateral  inheritances  in  1893  * 
and  direct  inheritances  in  1909.2  The  following  taxes  are 
now  imposed: 3  — 

Direct  inheritances  — 

Inheritances  to  husband,  wife,  father,  mother, 
child,  adopted  child  or  adoptive  parent  — 

Not  exceeding  $50,000 1% 

$50,000  to  $100,000 1|% 

Over  $100,000 2% 

Exemption,  $10,000. 

Inheritances  to  lineal  ancestor  (except  parents), 
lineal  descendant  (except  children),  wife  or  widow 
of  son,  husband  of  daughter  — 

Under  $50,000 1% 

$50,000  to  $100,000 \\% 

Over  $100,000 2% 

Exemption,  $500. 

Collateral  inheritances  — 

Inheritances  to  brother,  sister,  uncle,  aunt, 
nephew,  niece,  cousin  — 

Not  exceeding  $50,000 4% 

$50,000  to  $100,000 4|% 

Over  $100,000 5% 

Exemption,  $500. 

All  other  inheritances  — 

Not  exceeding  $50,000 5% 

$50,000  to  $100,000 6% 

Over  $100,000 7% 

Exemption,  $500. 

Exemptions  apply  to  each  individual  inheritance  and 
not  to  the  estate  as  a  whole.4  Probate  Courts  have 
charge  of  inheritance  tax  matters. 

1  St.  1893,  c.  146.  2  St.  1909,  c.  186,  187. 

•  Rev.  St.,  c.  8,  §§  69-97,  as  amended  by  St.  1905,  c.  124;  St.  1909, 
c.  186,  187;  St.  1911,  c.  163;  St.  1913,  c.  128,  190. 
4  State  v.  Hamlin,  86  Me.  495. 


46  INHERITANCE  TAXES 

Former  uncertainties  in  the  interpretation  of  the  law 
seem  to  have  been  cured  by  recent  legislation  1  which 
provides  clearly  that  the  tax  is  levied  only  on  the  excess 
over  the  exemption  in  each  case  and  that  the  progressive 
rate  is  placed  on  the  whole  inheritance.  There  was 
formerly  some  question  whether  in  large  inheritances  the 
progressive  rate  was  assessed  only  on  the  excess  over  the 
minimum  figure  or  on  the  whole  inheritance. 

Maine  has  taken  an  advanced  position  in  trying  to 
avoid  double  taxation.  Property  of  a  resident  situated 
outside  the  State,  if  taxed  by  another  State  or  country, 
is  taxed  in  Maine  only  for  the  difference  if  the  Maine 
tax  is  the  greater.2  Property  of  a  non-resident  within 
the  jurisdiction  of  Maine,  if  subject  to  a  tax  in  his  home 
State  or  country,  pays  to  Maine  only  so  much  as  the 
Maine  tax  may  be  in  excess  of  the  tax  in  the  place  of 
residence. 

Maine  is  taxing  stock  of  Maine  corporations  owned 
by  non-residents,  and  the  corporation  is  responsible  for 
the  tax,  except  that  under  the  provisions  of  a  recent 
reciprocity  amendment3  any  personal  property  in 
Maine  of  a  non-resident  is  free  of  tax  if  the  non-resident 
lived  in  a  State  which  assesses  no  inheritance  tax  on 
personal  property  of  Maine  decedents. 

The  tax  may  be  levied  although  the  certificate  itself 
is  actually  outside  the  State  at  the  time  of  death.  Maine 
protects  its  popularity  as  a  State  for  the  incorporation 
of  business  corporations  by  non-residents  by  providing 
that  stock  of  a  non-resident  decedent  in  a  Maine  cor- 
poration is  not  taxable  unless  the  corporation  has  tan- 
gible property  in  Maine  exceeding  one  thousand  dollars 
in  value. 

1  St.  1911.  c.  163.  •  §  89.  «  St.  1913.  c.  190. 


INHERITANCE  TAXES  47 

Exemptions  of  non-residents  are  only  that  proportion 
of  the  whole  exempted  amounts  as  the  amount  of  the 
estate  of  the  non-resident  in  the  State  bears  to  the  total 
value  of  his  estate.1 

Stock  of  a  non-resident  in  railroad  or  street  railway, 
telegraph,  or  telephone  companies  incorporated  in  Maine 
and  also  in  some  other  State  or  country  (Boston  and 
Maine  Railroad,  for  example)  is  assessed  only  on  such 
portion  of  its  value  as  is  proportional  to  that  portion 
of  the  company's  lines  lying  within  the  State.  Real  es- 
tate in  Maine  of  a  non-resident  decedent  is  subject  to 
assessment. 

16.  MARYLAND 

Maryland  adopted  a  collateral  inheritance  tax  in 
1844.2  The  present  tax  is  on  collateral  inheritances  only, 
the  rate  is  uniformly  five  per  cent,  with  an  exemption 
of  $500,  which  applies  to  the  estate  as  a  whole,  not  to  in- 
dividual shares.  No  tax  is  levied  on  an  inheritance  to 
father,  mother,  husband,  wife,  child,  or  lineal  descend- 
ant.3 

It  would  seem  that  Maryland  formerly  attempted 
to  tax  shares  of  Maryland  corporations  owned  by  non- 
residents, but  they  are  not  now  considered  taxable. 
Securities  of  a  non-resident  deposited  in  Maryland 
for  safe-keeping  are  taxable,4  as  are  also  bequests  to 
charitable  corporations.5  Executors  or  administrators 
of  non-residents  must  give  four  weeks'  notice  by  adver- 

1  St.  1913,  c.  190.  For  discussion  of  similar  provisions  and  their 
validity  see  ante,  p.  12. 

2  St.  1844,  c.  237,  upheld  in  Tyson  v.  State,  28  Md.  577. 
8  Code  of  1910,  Art.  81,  §  120  et  sag. 

4  State  v.  Dalrymple,  70  Md.  294. 

6  Washington  County  Hospital  v.  Mealey,  121  Md.  274. 


48  INHERITANCE  TAXES 

tising  before  transferring  stock.1  The  executors'  and 
administrators'  commissions  are  also  taxed.  Real  estate 
of  a  non-resident  in  Maryland  is  taxable. 

17.  MASSACHUSETTS 
A  STATE  WHICH  FAVORS  NON-RESIDENTS 

Massachusetts  first  adopted  a  collateral  inheritance 
tax  in  1891  2  and  a  direct  inheritance  tax  in  1907.3  It 
seems  to  be  the  custom  to  change  the  law  annually,4  the 
last  amendment  being  in  1916.5  The  main  new  feature 
of  the  law  is  the  extension  of  the  tax  over  interests  ac- 
cruing by  survivorship  in  any  form  of  joint  ownership 
to  which  the  decedent  contributed. 

The  new  rates  are  as  follows:  — 

To  husband,  wife,  parent,  child,  grandchild, 
adopted  child  or  adoptive  parent  — 

Not  exceeding  $25,000 1% 

$  25,000  to  $      50,000 2% 

50,000  to       250,000 4% 

250,000to    1,000,000 5% 

Exceeding      1,000,000 6% 

Exemption,  to  husband,  wife,  parent,  child, 
adopted  child,  adoptive  parent,  $10,000. 
To  all  others,  $1000. 

To  lineal  ancestor  or  descendant  not  included  in 
above  class,  a  wife  or  widow  of  a  son,  husband  of 
a  daughter,  lineal  descendant  of  adopted  child  or 
lineal  ancestor  of  adoptive  parent  — 

1  Code  of  1910,  Art.  93,  §§  78,  79. 

'  *  St.  1891,  c.  425,  upheld  in  Minot  9.  Winthrop,  162  Mass.  113; 
Crocker  v .  Shaw,  174  Mass.  266. 

*  St.  1907,  c.  563. 

4  See,  for  example,  St.  1909,  c.  490,  pt.  4;  St.  1911,  c.  502,  551;  St. 
1912,  c.  678;  St.  1913,  c.  498,  689;  St.  1914,  c.  462,  563;  St.  1915,  c.  64, 
152. 

8  St.  1916,  c.  268,  increasing  previous  rates. 


INHERITANCE  TAXES  49 

Not  exceeding  $10,000 1% 

$  10,000  to  $      25,000 2% 

25,000  to         50,000 4% 

50,000  to       250,000 5% 

250,000  to    1,000,000 6% 

Exceeding      1,000,000 7% 

Exemption,  $1000. 

To    brother,    sister,    stepchild,    stepparent,    half 
brother,  half  sister,  nephew,  or  niece  — 

Not  exceeding  $10,000 3% 

$  10,000  to  $      25,000 5% 

25,000  to         50,000 7% 

50,000  to       250,000 8% 

250,000  to    1,000,000 9% 

Exceeding      1,000,000 10% 

Exemption,  $1000. 

To  all  others  — 

Not  exceeding  $10,000 5% 

$  10,000  to  $      25,000 6% 

25,000  to         50,000 7% 

50,000  to       250,000 8% 

250,000  to    1,000,000 9% 

Exceeding      1,000,000 10% 

Exemption,  $1000. 

Exemptions  apply  to  each  individual  inheritance  and 
not  to  the  estate  as  a  whole.  It  should  be  noted  that  the 
tax,  where  levied,  is  on  the  full  amount  without  deduct- 
ing the  exemption.  Thus  a  bequest  of  $10,000  by  a  resi- 
dent to  a  child  would  be  taxed  nothing,  a  bequest  of 
$20,000  would  be  taxed  $200,  one  per  cent  on  the  full 
$20,000.  But  the  tax  must  not  reduce  the  inheritance 
below  the  exempted  figure,  so  an  inheritance  of  $10,001 
would  pay  only  $1.* 

1  See  Davis  v.  Stevens,  208  Mass.  343;  Callahan  v.  Woodbridge,  171 
Mass.  595;  Attorney-General  v.  Barney,  211  Mass.  134. 


50  INHERITANCE  TAXES 

The  tax  is  not  claimed  on  stock  of  foreign  corporations 
owning  property  in  the  State  unless  such  stock  is  held  by 
the  estates  of  resident  decedents,  although  real  estate  in 
Massachusetts,  or  any  interest  therein  belonging  to  a 
non-resident  is  subject  to  the  tax.1  This  was  accom- 
plished in  1912  by  an  amendment  exempting  all  per- 
sonal property  of  a  non-resident.  Massachusetts  has 
thus  followed  the  lead  of  New  York  in  taking  the  last 
step  to  eliminate  the  evils  of  double  taxation,  and  has 
gone  beyond  New  York  by  relieving  from  tax  tangible  as 
well  as  intangible  personal  property  of  non-residents. 

Shares  in  voluntary  associations,  such  as  Massachu- 
setts Gas  and  Massachusetts  Electric,  and  also  shares  in 
local  real  estate  trusts,  are  treated  like  stock  in  Massa- 
chusetts corporations,2  except  that  the  Tax  Commis- 
sioner claims  a  tax  on  shares  in  local  real  estate  trusts 
belonging  to  non-residents,  on  the  ground  that  under 
the  decisions  they  constitute  interests  in  real  estate. 

The  tax  cannot  be  collected  unless  notice  of  its  levy  is 
sent  to  the  representative  of  the  estate  of  the  deceased 
person,3  but  a  decree  of  distribution  of  the  Probate 
Court  does  not  free  the  representative  of  the  estate  from 
liability  for  the  tax.4 

1  St.  1912,  c.  678.   A  very  learned  opinion  concerning  the  applica- 
tion of  the  former  law  to  the  property  of  non-residents  may  be  found 
in  Bliss  v.  Stevens,  221  Mass.  201.   The  court  holds  notes  held  by  a 
non-resident  made  by  a  partnership  doing  business  in  Massachusetts 
and  other  States  to  be  non-taxable,  and  registered  bonds  of  the  Com- 
monwealth to  be  taxable  except  for  the  reciprocal  clause  of  the  old 
act  which  it  construes.  See  also  Borden  t>.  Burrill,  221  Mass.  212,  and 
Clark  ».  Treasurer,  218  Mass.  292. 

2  Peabody  c.  Treasurer,  215  Mass.  129. 

A  mortgage  held  by  a  non-resident  on  Massachusetts  real  estate  is 
also  taxable.  Hawkridge  v.  Burrill,  223  Mass.  134. 

3  Attorney-General  ».  Roche,  219  Mass.  601. 

4  Attorney-General  v.  Rafferty,  209  Mass.  321. 


INHERITANCE  TAXES  51 

The  Tax  Commissioner  has  authority  to  compound  the 
tax  only  in  case  of  uncertain  contingent  interests. 

The  State  reserves  the  right,  in  allowing  deductions 
for  taxes  paid  to  other  States  by  the  estates  of  residents, 
to  decide  whether  such  taxes  were  "legally"  imposed 
and  has  recently  refused  to  allow  as  a  deduction  a  Mich- 
igan tax  imposed  on  the  transfer  of  stock  in  a  Wisconsin 
corporation,  which  tax  was  based  solely  on  the  fact  that 
the  corporation  owned  property  in  the  State  of  Michi- 
gan.1 

The  Tax  Commissioner  was  attempting  to  levy  the 
tax  on  the  transfer  of  insurance  policies,  but  the  Probate 
Court  ruled  against  this  contention  and  the  same  result 
was  reached  before  the  Supreme  Court.2 

18.  MICHIGAN 

Michigan's  first  inheritance  tax  law  enacted  in  1893 
was  held  unconstitutional.3  The  present  statute  dates 
from  1899,4  with  important  amendments  in  1903,  1907, 
and  1909.  An  interesting  feature  is  that  in  the  case  of 
direct  inheritances,  personal  property  only  is  taxed. 

The  following  taxes  are  imposed : 5  — 

Direct  inheritances,  including  inheritances  to 
grandparents,  parents,  husband,  wife,  child, 
brother,  sister,  wife  or  widow  of  son,  husband  of 

1  Welch  v.  Burrill,  223  Mass.  87.  The  Tax  Commissioner  is  also  re- 
fusing to  recognize  the  New  Jersey  taxes  as  legal  deductions  in  certain 
cases,  especially  as  to  widows. 

2  Tyler  v.  Treasurer  (Mass.  1917),  115  N.E.  300. 

3  Chambe  v.  Judge,  100  Michigan,  112. 

4  For  constitutionality  see  Union  Trust  Co.  c.  Judge,  125  Mich.  487. 
8  P.A.  1899,  No.  188;  P.A.  1903,  No.  195;  P.A.  1907,  Nos.  155  and 

238;  P.A.  1909,  Nos.  44  and  298;  P.A.  1911,  Nos.  73  and  265;  P.A. 
1913,  Nos.  17  and  30;  P.A.  1915,  Nos.  195  and  198. 


52  INHERITANCE  TAXES 

daughter,   adopted  or  mutually  acknowledged 

child,  lineal  descendant 1% 

Exemptions,  real  estate,  personal  property 
up  to  $2000;  to  wife,  $5000. 

Collateral  inheritances,  including  all  other  inherit- 
ances       5% 

Exemption,  $100. 

The  exemptions  apply  to  individual  shares,  not  to  the 
estate  as  a  whole,  but  when  the  share  exceeds  the  ex- 
emption the  whole  share  is  taxed  in  case  of  direct  in- 
heritances. 

Michigan  taxes  stock  of  a  Michigan  corporation 
owned  by  a  non-resident  wherever  held.  It  taxes  regis- 
tered bonds  of  a  Michigan  corporation  as  well.  A  person 
or  corporation  that  transfers  or  delivers  securities  or 
assets  of  a  non-resident  before  the  tax  is  paid  is  respon- 
sible for  the  tax. 

This  provision  was  recently  held  not  to  render  a 
Michigan  corporation  liable  for  transfers  of  its  stock  held 
by  non-resident  decedents,1  but  the  law  has  been 
amended  to  render  the  corporation  liable  for  such 
transfers.2 

Michigan  taxes  stock  or  bonds  of  a  foreign  corpora- 
tion owned  by  a  non-resident  if  the  certificates  are  kept 
in  Michigan.  Stock  belonging  to  a  non-resident  of  a 
foreign  corporation  owning  property  in  the  State  8  and 
real  estate  in  the  State,  the  property  of  a  non-resident, 
are  also  taxable. 

1  People  v.  Quincy  Mining  Co.,  143  N.W.  640. 
1  St.  1915,  c.  195. 

1  This  tax  was  held  illegal  in  Welch  t>.  Burrill,  223  Mass.  87.  See 
ante,  p.  12. 


INHERITANCE  TAXES  53 

19.  MINNESOTA 

Minnesota  has  had  much  difficulty  in  getting  an  in- 
heritance tax  that  would  satisfy  the  courts.  Graduated 
probate  fees  similar  to  those  in  Wisconsin,  first  adopted 
in  1875 l  and  extended  in  1885,2  were  held  unconstitu- 
tional.3 The  same  fate  successively  befell  the  inherit- 
ance tax  laws  of  1897,4  1901,5  and  1902.6  The  act 
adopted  in  1905 7  survived,8  but  none  too  easily.  A 
restrictive  constitutional  amendment  adopted  in  1894, 
which  the  Legislature  persisted  in  disregarding,  was 
supplanted  in  1906 9  by  another  amendment,  which,  we 
are  advised  by  the  Attorney-General,  leaves  no  limitation 
or  restriction  on  the  Legislature  as  to  inheritance  tax 
statutes,  as  it  restricts  all  limitations  of  authority  to 
property  taxes. 

The  present  law  was  passed  in  191 110  and  slightly 
amended  in  1913,11  and  was  enacted  in  response  to  a 
demand  of  the  State  Tax  Commission  to  differentiate 
between  direct  and  collateral  inheritances.  There  was 
some  doubt  whether  such  a  distinction  would  be  valid 
in  view  of  the  requirement  of  "uniformity"  in  the  con- 
stitution; but  the  new  law  has  recently  been  sustained 
in  all  respects.12 

1  St.  1875,  c.  37.  *  St.  1885,  c.  103. 

I  State  v.  Gorman,  40  Minn.  232. 

4  St.  1897,  c.  293,  declared  void  in  exempting  real  property  and  for 
other  reasons  in  Drew  v.  Tifft,  79  Minn.  175. 

6  St.  1901,  c.  255,  declared  void  in  State  v.  Bazille,  87  Minn.  500. 

8  St.  1902,  c.  3,  declared  void  in  State  v.  Harvey,  90  Minn.  180. 

7  St.  1905,  c.  288.  8  State  v.  Bazille,  97  Minn.  11. 

9  St.  1905,  c.  168.  10  St.  1911,  c.  209,  372. 

II  St.  1913,  c.  455,  565,  574. 

12  State  v.  Probate  Court,  150  N.W.  1094.  This  decision  covers  a 
variety  of  subjects  and  extends  the  principles  of  Blackstone  v.  Miller, 
188  U.S.  189,  as  to  the  taxable  situs  of  debts  due  decedent.  In  this  case 


64  INHERITANCE  TAXES 

The  following  taxes  are  imposed:  — 

To  wife  or  lineal  descendant  — 

Not  exceeding  $15,000 1% 

$15,000  to  $  30,000 \\% 

30,000  to      50,000 2% 

50,000  to    100,000 2|% 

Exceeding    100,000 8% 

Exemption,  $10,000. 

To  husband,  lineal  ancestor  or  child  adopted  or 
acknowledged  or  his  issue  — 

Not  exceeding  $15,000 \\% 

$15,000  to  $  30,000 2|% 

30,000  to      50,000 3% 

50,000  to    100,000 3j% 

Exceeding    100,000 

Exemptions  — 

To  husband,  adopted  child,  or  issue,  $10,000. 
To  lineal  ancestor, 


To  brother  or  sister  or  descendant,  wife  or  widow 
of  a  son  or  husband  of  a  daughter  — 

Not  exceeding  $15,000 3% 

$15,000  to  $  30,000 4^% 

30,000  to      50,000 6% 

50,000  to    100,000 1\% 

Exceeding    100,000 9% 

Exemption,  $1000. 

To  brother  or  sister  of  father  or  mother  or  descend- 
ant— 

Not  exceeding  $15,000 4% 

$15,000  to  $  30,000 6% 

30,000  to      50,000 8% 

50,000  to    100,000 10% 

Exceeding    100,000 12% 

Exemption,  $250. 

the  relator  interposed  the  constitutional  objections  upheld  in  the  New 
Jersey  cases  of  Dixon  v.  Russell,  79  N.  J.L.  490,  and  Neilson  v.  Russell, 
76  N.J.L.  655,  but  the  court  declined  to  follow  the  New  Jersey  prece- 
dents. 


INHERITANCE  TAXES  55 

To  all  other  relatives  or  strangers  (except  chari- 
ties) — 

Not  exceeding  $15,000 5% 

$15,000  to  $  30,000 1\% 

30,000  to      50,000 10% 

50,000  to    100,000 12|% 

Exceeding    100,000 15% 

Exemption,  $100. 

To  educational  or  charitable  institutions  — 

Not  exceeding  $15,000 2% 

$15,000  to  $  30,000 3% 

30,000  to      50,000 4% 

50,000  to    100,000 5% 

Exceeding    100,000 6% 

Exemption,  $2500. 

The  exemption  is  given  in  each  case  to  the  individ- 
ual beneficiary. 

Non-residents  fare  as  badly  as  in  most  States.  The 
stock  in  domestic  corporations  owned  by  the  estates  of 
non-residents  is  subject  to  the  tax,1  and  even  the  exer- 
cise by  a  resident  of  a  power  of  appointment  created  by 
the  will  of  a  non-resident  concerning  property  outside 
the  State  is  taxable.2  So  debts  owed  by  residents  to  the 
estates  of  non-residents  are  taxable,3  but  mortgage 
bonds  of  a  Minnesota  railroad  corporation  owned  by  a 
non-resident  decedent  passing  to  non-residents  are  not 
taxable,  although  the  mortgage  covers  Minnesota  real 
estate.4 

The  State  authorities  have  recently  begun  to  tax  trust 
certificates,  such  as  Great  Northern  Ore  certificates,  in 
the  same  class  as  shares  of  stock.  The  question  is  now 

1  State  t.  Probate  Court,  150  N.W.  1094. 
1  State  v.  Probate  Court,  124  Minn.  508. 
»  State  v.  Probate  Court,  128  Minn.  371. 
4  In  re  Ward's  Estate,  157  N.W.  1076. 


50  INHERITANCE  TAXES 

being  litigated  in  a  case  which  will  probably  be  decided 
during  the  spring  of  1917. 

A  reciprocal  provision  favoring  non-residents,  passed 
in  1911,  was  repealed  in  1913.  The  State  does  not,  how- 
ever, go  so  far  as  to  tax  transfers  of  stock  in  foreign  cor- 
porations belonging  to  non-residents  simply  on  the 
ground  that  it  owns  property  and  does  business  in  the 
State.  Real  estate  in  the  State  belonging  to  a  non- 
resident is  taxable. 

A  non-resident  executor  is  required  to  file  an  affidavit 
attaching  a  copy  of  the  will  and  details  of  all  property  in 
the  State,  the  total  valuation  of  all  real  and  personal 
property  of  the  decedent,  and  details  of  the  beneficiaries. 

The  new  act  contains  the  provision,  which  has  re- 
cently become  very  popular,  forbidding  safe-deposit  or 
other  companies  holding  securities  or  assets  of  a  dece- 
dent to  deliver  them  until  notice  of  the  time  and  place  of 
the  intended  transfer  has  been  served  on  the  Attorney- 
General.  Corporations  transferring  their  stock  without 
the  assent  of  the  State  authorities  are  liable  for  the  tax. 

20.  MISSOURI 

Missouri's  first  attempt  at  a  collateral  inheritance  tax 
in  1895  was  held  unconstitutional.1  A  second  attempt 
in  1899  fared  better.8 

Collateral  inheritances  only  are  taxed.  The  rate  is 
uniformly  five  per  cent  and  there  is  no  amount  exempted. 
The  inheritances  exempt  are  those  to  father,  mother, 
husband,  wife,  lineal  descendant,  and  adopted  child.3 

An  interesting  detail  is  that  the  proceeds  of  the  tax  are 

1  State  P.  Switzler,  143  Mo.  287. 

*  State  v.  Henderson,  160  Mo.  190. 

1  Rev.  Stat.  1909,  c.  2,  Art.  14,  §§  309-331.  See  St.  1915,  pp.  92, 93. 


INHERITANCE  TAXES  57 

devoted  to  the  support  of  the  University  of  Missouri, 
providing  a  sort  of  compulsory  bequest  for  higher  educa- 
tion from  every  estate. 

Missouri  taxes  stock  of  a  Missouri  corporation  owned 
by  a  non-resident;  but  does  not  claim  a  tax  on  the  stock 
owned  by  non-residents  in  foreign  corporations  simply 
because  the  corporations  own  property  in  the  State,  al- 
though the  State  does  tax  real  estate  in  the  State  be- 
longing to  non-residents,  and  it  apparently  taxes  stock 
of  a  foreign  corporation  owned  by  a  non-resident  if  the 
stock  certificate  is  kept  in  Missouri.  A  debt  due  from  a 
resident  to  the  estate  of  a  non-resident  is  subject  to  the 
tax.1 

The  court  in  an  early  opinion 2  seems  to  have  disap- 
proved of  the  progressive  rate,  so  it  is  doubtful  if  any 
legislation  in  that  direction  would  be  upheld  until  the 
Missouri  constitution  is  changed. 

21.  MONTANA 

Montana's  inheritance  tax  was  adopted  in  1897,3  and 
was  a  close  copy  of  the  New  York  act  of  1885.  The 
statute  is  peculiar  in  that  direct  descendants  are  not 
assessed  on  real  estate,  while  collaterals  are,  although 
the  act  is  so  poorly  framed  that  it  took  a  decision  of  the 
Supreme  Court  to  establish  this.4 

A  widow's  allowance  is  not  taxable.5  The  tax  is  upheld 
as  being  on  the  right  to  receive  and  not  on  the  estate.6 

1  State  v.  Bunce,  187  Mo.  App.  607. 

2  State  v.  Switzler,  143  Mo.  287. 

3  St.  1897,  p.  83,  now  Rev.  Code  of  1907,  §§  7724-7751.  For  con- 
stitutionality see  Gelsthorpe  v.  Furnell,  20  Mont.  299- 

4  Hinds  v.  Wilcox,  22  Mont.  4. 

8  In  re  Blackburn's  Estate,  152  Pac.  81. 

9  In  re  Blackburn's  Estate,  152  Pac.  31. 


58  INHERITANCE  TAXES 

The  following  taxes  are  imposed:  — 

On  personal  property  of  father,  mother,  husband, 
wife,  child,  brother,  sister,  wife,  or  widow  of  a  son 
or  husband  of  a  daughter,  adopted  or  mutually 

acknowledged  child  or  lineal  descendant 1% 

Exemption,  $7500. 

On  real  and  personal  property  of  all  other  bene- 
ficiaries    5% 

Exemption,  $500. 

The  exemptions  apply  to  the  estate  as  a  whole,  not  to 
the  individual  share,  and  if  the  total  value  of  the  estate 
is  above  the  exemption,  none  of  the  exemptions  apply.1 

Montana  is  collecting  the  tax  on  stock  in  Montana 
corporations  owned  by  non-residents,  but  not  on  a  non- 
resident's stock  in  foreign  corporations  owning  property 
in  the  State.  The  tax  is  claimed  on  real  estate  in  Mon- 
tana belonging  to  non-residents. 

The  representative  of  the  estate  of  a  non-resident 
must  file  an  affidavit  showing  details  of  stock  and  other 
personal  property  in  the  State  and  the  total  value  of  the 
assets  and  debts,  but  need  not  file  a  complete  inven- 
tory of  the  estate. 

22.  NEBRASKA 

Nebraska  enacted  its  inheritance  tax  in  1901. 2  The 
following  taxes  are  imposed:  3  — 

Direct  inheritances,  including  those  to  father, 
mother,  husband,  wife,  child,  brother,  sister, 

1  See  State  t>.  District  Court,  41  Mont.  357. 

2  For  constitutionality  see  State  v.  Vinsonhaler,  74  Neb.  675. 

s  Compiled  Stats.  (1905)  c.  77,  Art.  vin,  §§  5176  to  5196,  as 
amended  by  St.  1907,  c.  103,  104;  St.  1911,  c.  107;  St.  1913,  c.  14, 
48;  St.  1915,  c.  113. 


INHERITANCE  TAXES  59 

wife  or  widow  of  son,  husband  of  daughter, 
adopted  or  acknowledged  child,  lineal  descend- 
ant — 

Under  $10,000 exempt 

Excess  over  $10,000 1% 

Collateral  inheritances  — 

Inheritances  to  uncle,  aunt,  niece,  nephew  and 
lineal  descendant  of  same  — 

Under  $2000 exempt 

Excess  over 


All  other  inheritances  — 

Under  $5000 2% 

$  5,000  to  $10,000 3% 

10,000  to    20,000 4% 

20,000  to    50,000 5% 

Over  $50,000 6% 

Exemption,  $500. 

The  exemptions  apply  to  each  individual  share  rather 
than  to  the  estate  as  a  whole,  though  the  language  creat- 
ing the  $500  exemption  is  ambiguous.1  The  statutory 
interests  of  husband  and  wife  are  exempt.2 

It  is  a  fair  construction  of  the  statute  that  stock  in  a 
Nebraska  corporation  owned  by  a  non-resident  is  sub- 
ject to  the  tax,  especially  as  there  is  a  provision  holding 
the  corporation  responsible  if  it  transfers  stock  for  a 
foreign  executor  before  the  tax  is  paid,  if  it  has  knowl- 
edge that  the  stock  is  subject  to  tax.  The  tax  authorities 
are  not  collecting  a  tax  on  such  stock  at  present  if  the 
certificate  is  kept  outside  the  State. 

The  office  of  the  Attorney-General  suggests  3  that  no 
court  has  jurisdiction  to  assess  an  inheritance  tax  except 

1  See  State  v.  Vinsonhaler,  74  Neb.  675. 

1  In  re  Strahan's  Estate,  142  N.W.  678;  In  re  Sanford's  Estate, 
91  Neb.  752. 
_  »  Under  date  of  February  2, 1917. 


60  INHERITANCE  TAXES 

the  County  Court  of  the  residence  of  the  decedent  or  the 
County  Court  of  the  county  in  which  he  left  real  estate, 
and  therefore  an  inheritance  tax  might  be  levied  on 
stock  in  a  Nebraska  corporation  belonging  to  a  non- 
resident only  if  he  left  real  estate  in  the  State  to  give  the 
County  Court  jurisdiction. 

23.  NEVADA 

Nevada  first  enacted  an  inheritance  tax  in  1913  l 
with  high  progressive  rates. 

The  following  taxes  are  imposed:  — 

To  husband,  wife,  lineal  issue  or  lineal  ancestor,  or 
child  adopted  or  mutually  acknowledged  or  its 
lineal  issue  • — 

Not  exceeding  $25,000 1% 

$  25,000  to  $  50,000 2% 

50,000  to    100,000 3% 

100,000  to    500,000 4% 

Exceeding      500,000 5% 

Exemptions:    To    widow    or    minor    child, 
$20,000;  all  others  in  this  class,  $10,000. 

To  brother  or  sister  or  descendant  of  brother  or 
sister,  wife  or  widow  of  son  or  husband  of 
daughter  — 

Not  exceeding  $25,000 2% 

$  25,000  to  $  50,000 4% 

50,000  to    100,000 6% 

100,000  to    500,000 8% 

Exceeding      500,000 10% 

Exemption,  $10,000. 

To  brother  or  sister  of  father  or  mother  or  descend- 
ant of  such  brother  or  sister  — 

Not  exceeding  $25,000 3% 

$25,000  to  $  50,000 6% 

50,000  to    100,000 9% 

1  St.  1913,  c.  266. 


INHERITANCE  TAXES  61 

$100,000  to  $500,000 12% 

Exceeding      500,000 15% 

Exemption,  $5000. 

To  brother  or  sister  of  grandfather  or  grandmother 
or  descendant  of  such  brother  or  sister  — 

Not  exceeding  $25,000 4% 

$  25,000  to  $  50,000 8% 

50,000  to    100,000 12% 

100,000  to    500,000 16% 

Exceeding      500,000 20% 

No  exemption. 

To  all  others  — 

Not  exceeding  $25,000 5% 

$  25,000  to  $  50,000 10% 

50,000  to    100,000 15% 

100,000  to    500,000 '. 20% 

Exceeding      500,000 25% 

No  exemption. 

The  exemptions  are  figured  by  the  tax  authorities  on 
the  whole  estate,  although  it  would  seem  at  least  doubt- 
ful whether  they  should  not  be  reckoned  on  the  share  of 
each  beneficiary.  There  is  as  yet  no  authoritative  deci- 
sion on  the  point. 

The  transfer  of  stock  in  a  Nevada  corporation  belong- 
ing to  a  non-resident  is  taxed,  as  is  stock  in  a  foreign 
corporation  owning  property  in  the  State  when  the 
stock  belongs  to  a  non-resident.1  Real  estate  in  the 
State  belonging  to  a  non-resident  is  also  subject  to  tax. 

24.  NEW  HAMPSHIRE 
A  RECENT  CONVERT  TO  TAX  REFORM 
New  Hampshire's  first  inheritance  tax,  one  per  cent 
on  collateral  inheritances,  enacted  in  1878,  was  held 
unconstitutional  in  1882.2 

1  As  to  validity  of  such  tax,  see  ante  p.  12. 
*  Curry  v.  Spencer,  61  N.H.  624. 


62  INHERITANCE  TAXES 

An  amendment  to  the  constitution  in  1903  paved  the 
way  for  the  present  collateral  inheritance  tax  enacted  in 
1905,1  and  amended  in  1909,2  1911,3  and  1915."  This 
last  amendment  has  placed  the  State  in  line  with  the 
cause  of  fairness  in  taxation  by  doing  away  entirely  with 
the  taxation  of  personal  property  of  non-residents. 

The  tax  includes  property  passing  by  will  made  in 
pursuance  of  contract  as  well  as  gratuitous  bequests.8 

The  law  formerly  provided  for  the  proportionate  tax- 
ing of  shares  of  stock  of  non-resident  decedents  of  rail- 
road, telegraph,  and  telephone  companies  incorporated 
in  both  New  Hampshire  and  some  other  State,  but  now 
instead  any  real  estate  or  interest  therein  of  non-resi- 
dents is  taxed,  and  the  effect  of  the  new  law  is  to  abolish 
inheritance  taxation  on  the  stock  and  bonds  of  domestic 
corporations  held  by  non-residents.  The  new  law  pro- 
vides that  real  estate  in  New  Hampshire  of  a  non-resi- 
dent decedent  may  be  transferred  on  adjustment  of  the 
tax  with  the  State  treasurer  without  the  trouble  and 
expense  of  ancillary  administration.  This  is  an  example 
which  might  well  be  followed  in  some  of  our  Western 
States. 

The  future  development  of  inheritance  taxes  in  New 
Hampshire  has  been  left  in  an  uncertain  condition  by  its 
Supreme  Court,  which  in  1911  was  asked  its  opinion  of 
the  validity  of  certain  proposed  legislation.  The  court 
replied  that  the  inheritance  tax  need  not  be  proportional 
and  that  classification  by  relationship  would  be  proper, 

1  The  act  of  1905,  c.  40,  was  upheld  in  Thompson  t>.  Kidder,  74 
N.H.  89. 

«  St.  1909,  c.  104.  »  St.  1911,  c.  42. 

*  St.  1915,  c.  106.  Other  minor  amendments  were  also  made  in 
1907. 

6  Carter  v.  Craig,  90  All.  598. 


INHERITANCE  TAXES  63 

but  as  to  the  validity  of  progressive  rates  the  court  was 
divided  and  declined  to  express  any  opinion.1 

The  tax  is  on  collateral  inheritances  only,  the  rate  is 
uniformly  five  per  cent,  and  no  amount  is  exempt.  No 
tax  is  levied  on  an  inheritance  to  father,  mother,  hus- 
band, wife,  lineal  descendant,  brother,  sister,  adopted 
child,  lineal  descendant  of  adopted  child,  wife  or  widow 
of  son,  husband  of  daughter. 

It  is  the  practice  to  require  a  complete  inventory  of  a 
non-resident's  estate. 

25.  NEW  JERSEY 

TAXES  ALL  INHERITANCES  —  A  TRADE  WITH 
INFORMERS 

New  Jersey  had  a  collateral  inheritance  tax  from 
1892 2  to  1914  when  direct  inheritances  were  first  taxed 
and  a  moderate  progressive  rate  imposed. 

The  following  taxes  are  now  collected : 3  — 

To  husband,  wife,  child  or  issue  of  child,  adopted 
child  or  his  issue  or  mutually  acknowledged 
child  — 

Not  exceeding  $5000 exempt 

$    5,000  to  $  50,000 1% 

50,000  to    150,000 \\% 

150,000  to    250,000 2% 

Over  $250,000 3% 

To  father,  mother,  brother,  sister,  wife  or  widow  of 
a  son  or  husband  of  a  daughter  — 

Not  exceeding  $5000 exempt 

$5000  to  $50,000 2% 

1  Opinion  of  Justices,  79  All.  490.  *  St.  1892,  c.  122. 

8  St.  1914,  c.  151,  upheld  in  Howell  c.  Edwards,  96  Atl.  186.  The 
progressive  rates  in  the  act  of  1914  were  construed  in  Torrance  v. 
Edwards,  99  Atl.  136. 


64  INHERITANCE  TAXES 

$  50,000  to  $150,000 2|% 

150,000  to    250,000 8% 

Over  $250,000 4% 

All  others  except  domestic  charities  and  public  insti- 
tutions are  taxed  at  the  uniform  rate  of  five  per  cent  on 
amounts  exceeding  $500. 

Exemptions  are  figured  on  the  individual  share  of 
each  beneficiary. 

In  1908  the  Court  of  Appeals  of  New  Jersey  decided 
that  under  the  law  of  1894  stock  in  a  New  Jersey  cor- 
poration belonging  to  a  testator  domiciled  in  a  foreign 
country  was  not  taxable.1 

Under  the  present  law  New  Jersey  is  taxing  stock  in 
a  New  Jersey  corporation  owned  by  a  non-resident.  A 
corporation  which  transfers  such  stock  without  permis- 
sion from  the  Comptroller  is  responsible  for  the  tax  and 
subject  to  a  penalty  as  well.  An  appeal  from  a  decision 2 
of  the  Supreme  Court  upholding  this  tax  under  the  pres- 
ent law  is  now  pending,  and  the  attorneys  acting  for  the 
taxpayer  are  so  confident  of  success  that  we  suggest  that 
the  tax  be  paid  under  protest  or  that  payment  be  de- 
layed until  the  decision  is  rendered.  The  ground  of 
attack  is  that  the  ratio  provision  covering  exemptions 
lacks  uniformity.3  In  such  a  case  the  tax  on  the  portion 
of  the  estate  in  New  Jersey  is  that  proportion  of  the  tax 
which  the  estate  would  have  had  to  pay  if  the  deceased 
had  been  a  resident  of  New  Jersey  which  the  New  Jersey 
portion  of  the  estate  bears  to  the  entire  estate.4 

1  Neilson  v.  Russell,  76  N.J.  L.  655. 

»  Maxwell  v.  Edwards,  99  All.  138.  See  Senff  v.  Edwards,  88  Atl. 
1026;  Hopper  c.  Edwards,  96  Atl.  667. 

1  See  further,  ante,  p.  12. 

4  See  St.  1915,  c.  392.  The  Massachusetts  tax  commissioner  is  ob- 
jecting to  the  New  Jersey  method  of  apportioning  the  tax  and  is 


INHERITANCE  TAXES  65 

The  effect  of  the  present  law  is  that  the  only  prop- 
erty of  non-residents  subject  to  tax  is  real  estate  and 
tangible  personal  property  in  the  State  and  stock  of 
domestic  corporations. 

No  tax  is  laid  on  the  transfer  of  stock  of  foreign  cor- 
porations owning  property  in  the  State  when  the  dece- 
dent is  a  non-resident,  although  New  Jersey  real  estate 
owned  by  non-resident  decedents  is  subject  to  the  tax. 

Bonds  and  mortgages  belonging  to  a  non-resident 
covering  New  York  real  estate  were  held  taxable  in  a 
recent  case  where  they  were  physically  in  New  Jersey  at 
the  death  of  the  owner.1  The  State  does  not,  however, 
claim  a  tax  on  registered  bonds  issued  by  a  New  Jersey 
corporation  owned  by  a  non-resident  decedent.  Stocks 
pledged  by  the  testator  are  not  taxable.2 

The  act  of  1914 3  imposed  the  duty  on  banks  and  safe- 
deposit  companies  of  giving  the  Attorney-General  ten 
days'  notice  before  transferring  securities  to  the  execu- 
tors of  a  decedent.  The  period  in  which  a  discount  is 
allowed  for  prompt  payment  was  also  reduced  from  one 
year  to  six  months.4 

An  amendment  in  1914,5  designed  to  facilitate  the 
transfer  of  stock,  provided  that  the  Comptroller  might 
issue  a  waiver  on  receipt  of  five  per  cent  of  the  value  of 
the  stock  or  property  of  the  non-resident,  and  should 
then  refund  any  sum  later  found  to  be  in  excess  of  the 
tax. 

If  the  entire  estate  of  a  non-resident  passes  to  exempt 

refusing  to  allow  the  full  tax  paid  as  a  deduction  in  some  cases,  es- 
pecially as  to  widows. 

1  Hopper  P.  Edwards,  96  Atl.  667. 

8  Security  Trust  Co.  «.  Edwards,  99  Atl.  133. 

3  St.  1914,  c.  151.    See  St.  1915,  c.  392. 

4  St.  1915,  c.  331.  8  St.  1914,  c.  58. 


66  INHERITANCE  TAXES 

heirs,  the  executor  or  administrator  must  file  with  the 
Comptroller  a  copy  of  the  will,  if  any,  and  an  affidavit 
setting  forth  the  names  and  relationship  of  the  bene- 
ficiaries, whereupon  a  waiver  will  be  issued  permitting 
any  New  Jersey  stock  to  be  transferred. 

If  any  portion  of  a  non-resident's  estate  goes  to  other 
than  exempt  heirs,  it  is  necessary  to  file  in  addition  a 
complete  inventory  of  the  estate,  and  details  of  debts 
and  expenses  of  administration. 

The  Comptroller  is  authorized  to  make  an  arrange- 
ment to  pay  a  percentage  of  the  tax  that  may  be  col- 
lected to  any  person  giving  information  about  estates  of 
residents  that  have  not  taken  out  administration  within 
one  year  after  the  date  of  death,  and  estates  of  non- 
residents that  have  any  property  taxable  in  the  State  if 
the  tax  is  not  paid  within  three  months  after  the  death. 
We  know  of  no  other  State  which  has  entered  into  such 
a  partnership  with  informers. 

An  important  principle  has  recently  been  laid  down 
by  New  Jersey's  highest  court,  that  where  a  legatee  dies 
before  transfer  of  stock  bequeathed  no  inheritance  tax 
can  be  laid  on  his  estate,  as  it  had  no  interest  in  the 
stock  before  transfer.1  If  this  decision,  that  only  one 
transfer  tax  can  be  levied  on  each  transfer,  is  followed  in 
other  States  it  will  often  prevent  the  injustice  of  succes- 
sive taxes  on  the  same  stock  where  members  of  a  family 
die  in  quick  succession,  especially  if  the  executor  of  the 
first  beneficiary  is  not  too  hasty  in  asking  for  transfer. 
1  Miller  9.  Edwards,  89  All.  987. 


INHERITANCE  TAXES  67 

26.  NEW  YORK 

A  STATE  WHICH  HAS  RECENTLY  MODIFIED  ITS 
EXTREME  POSITION 

New  York  has  had  a  collateral  inheritance  tax  since 
1885,1  a  direct  inheritance  tax  on  personal  property  since 
1891  2  and  on  real  estate  since  1903.3  Until  1910  the 
rate  was  one  per  cent  on  direct  inheritances,  and  five  per 
cent  on  collateral  inheritances.  In  that  year  the  State 
passed  a  drastic  progressive  tax  running  up  to  twenty- 
five  per  cent  and  bearing  heavily  on  non-residents.4  The 
law  had  an  immediate  effect,  according  to  the  State 
Comptroller,  in  causing  wealthy  men  to  take  up  their 
residence  in  other  States  and  in  diverting  investors  from 
stock  in  New  York  corporations.  As  the  result  of  a 
strong  protest  from  various  interests  and  a  message 
from  the  Governor  the  law  was  repealed  in  1911 5  and 
replaced  by  an  eminently  fair  statute  which  stood  until 
1916,6  when  new  acts  were  passed  increasing  the  rates 
to  some  extent. 

The  following  taxes  are  imposed: T  — 

To  father,  mother,  husband,  wife,  child  or  adopted 
child  — 

Not  exceeding  $25,000 1% 

$25,000  to  $100,000 2% 

1  St.  1885,  c.  483.  *  St.  1891,  c.  215. 

3  St.  1903,  c.  41.  As  to  the  constitutionality  of  the  New  York  acts 
see  Matter  of  McPherson,  104  N.Y.  306;  Matter  of  Keeney,  194  N.Y. 
281;  Or  v.  Gilman,  183  U.S.  278;  Beers  c.  Glynn,  211  U.S.  477. 

4  St.  1910,  c.  706.  B  St.  1911,  c.  732. 

6  St.  1916,  c.  548,  in  effect  May  15, 1916.  The  tax  is  on  the  right  of 
succession  and  not  on  property.  In  re  Terry,  218  N.Y.  218. 

7  St.  1916,  c.  548,  in  effect  May  15,  1916.    Only  the   property  in 
excess  of  the  primary  limit  is  taxed  at  the  secondary  rate.   In  re 
Jourdon's  Estate,  135  N.Y.S.  172,   151   App.  Div.  8.    As  to  the 


68  INHERITANCE  TAXES 

$100,000  to  $200,000 3% 

Exceeding      200,000 4% 

Exemption,  $5000. 

The  same  rates  as  above  are  imposed  on  other  lineal 
descendants  with  an  exemption  of  $500. 

To  brother,  sister,  wife  or  widow  of  son  or  husband 
of  daughter  or  to  mutually  acknowledged  child  — 

Not  exceeding  $25,000 2% 

$  25,000  to  $100,000 3% 

100,000  to    200,000 4% 

Exceeding     200,000 5% 

Exemption,  $500. 

To  all  others  — 

Not  exceeding  $25,000 5% 

$  25,000  to  $100,000 6% 

100,000  to    200,000 7% 

Exceeding      200,000 8% 

Exemption,  $500. 

Real  estate  in  the  State  belonging  to  non-residents  is 
taxable  if  its  value  exceeds  the  exemptions  allowed. 

In  all  cases  the  authorities  require  an  affidavit  from 
the  representative  of  the  non-resident  showing:  — 

(1)  Name  and  residence  of  decedent  at  time  of  death,  with 
date  of  decedent's  death. 

(2)  Shares  of  stock  of  various  New  York  corporations  owned 
by  the  decedent;  also  shares  of  stock  of  corporations  hav- 
ing a  transfer  office  in  this  State. 

(3)  Bonds,  foreign  or  domestic,  physically  present  within 
this  State  at  the  time  of  decedent's  death. 

(4)  Bank  stock  and  cash  on  deposit  in  any  savings  bank  or 
other  institution  in  this  State. 

(5)  Real  property  in  this  State  owned  by  decedent  —  giving 
a  brief  description  of  each  parcel,  and  the  estimated 
value  thereof. 

progressive  rate  on  a  widow's  bequest  see  In  re  Elletson's  Estate,  136 
N.Y.S.  455,  75  Misc.  Rep.  582. 


INHERITANCE  TAXES  69 

(6)  Any  property,  real  or  personal,  or  any  interest  therein 
other  than  the  above  within  the  State  of  New  York,  and 
the  values  thereof,  including  interest  in  co-partnership 
doing  business  in  this  State. 

(7)  The  names  and  total  amount  of  interest  of  the  persons 
or  corporations  receiving  any  part  of  decedent's  estate 
or  any  life  estate  therein,  or  annuity;  and  the  relation- 
ship of  such  persons  to  the  decedent  —  if  a  corporation, 
whether  foreign  or  domestic. 

If  from  this  affidavit  it  appears  that  the  estate  is  ex- 
empt, consent  to  transfer  of  stock  in  a  New  York  corpor- 
ation is  immediately  forwarded.  The  simplicity  of  this 
procedure  should  commend  itself  to  lawmakers  in  those 
States  which  require  the  estates  of  non-residents  to  go  to 
all  the  expense  and  delay  incident  to  taking  out  ancillary 
probate  to  obtain  any  transfer  no  matter  how  small. 

New  York  is  not  one  of  the  States  that  tries  to  collect 
a  tax  on  the  shares  of  corporations  not  organized  under 
its  laws,  but  owning  property  in  the  State.  In  the  case 
of  corporations  organized  under  New  York  laws  and  the 
laws  of  other  States  as  well,  —  such  as  Boston  &  Albany, 
—  the  stock  is  taxed  on  the  proportionate  value  of  the 
property  in  New  York.1 

An  amendment  in  1915 2  provided  where  a  non-resi- 
dent decedent  owns  stocks,  bonds,  notes,  or  other  evi- 
dences of  an  interest  in  a  corporation  other  than  a 
moneyed  corporation  or  a  railway  or  transportation, 
public  service  or  manufacturing  corporation,  that  such 
stock  is  liable  to  taxation  in  the  proportion  the  value 
of  the  real  estate  owned  by  the  corporation  in  New  York 
or  the  value  of  the  entire  property  of  a  partnership 
located  in  New  York  bears  to  its  whole  property  wher- 

1  Matter  of  Cooley,  186  N.Y.  220;  Matter  of  Thayer,  193  N.Y.  430. 
1  St.  1915,  c.  664.  See  St.  1916,  c.  323,  §  83. 


70  INHERITANCE  TAXES 

ever  situated.  This  amendment  does  not  alter  the  spirit 
of  the  law,  but  was  passed,  as  we  are  informed  by  the 
State  comptroller,  to  reach  corporations  apparently 
organized  to  evade  the  law  in  respect  to  real  property. 


27.  NORTH  CAROLINA 

North  Carolina  had  a  collateral  inheritance  tax  from 
18471  to  1874.  A  modest  tax  was  imposed  on  both  direct 
and  collateral  inheritances  in  1897.2  In  1901  the  rates 
were  substantially  increased  and  made  progressive  with 
a  maximum  of  fifteen  per  cent.8  This  enactment  was 
much  more  radical  than  that  adopted  by  any  of  the 
States  up  to  that  time,  but  almost  duplicated  the  na- 
tional inheritance  tax  of  1898,  which  was  then  in  force. 
The  law  has  since  been  amended  lowering  the  maximum 
tax  to  nine  per  cent  and  strengthening  the  administra- 
tive features  of  the  tax.4 

The  following  taxes  are  now  imposed:  — 

Direct  inheritances,  including  lineal  issue,  lineal 
ancestor,  adopted  child,6  husband,  wife  — 

Above  exemption  up  to  $25,000 1% 

Excess  over  $  25,000  and  up  to  $100,000 2% 

Excess  over    100,000  and  up  to    250,000 3% 

Excess  over    250,000  and  up  to    500,000 4% 

Excess  over    500,000 5% 

Exemptions  —  widows,  $10,000;  child  under 
21,  $5000.  All  other  beneficiaries  in  this 
class,  $2000,  provided  grandchildren  shall 
be  allowed  the  single  exemption  of  the 
child  they  represent. 

1  St.  1847,  c.  72.          •  St.  1897,  c.  168.         »  St.  1901,  c.  9.  §  12. 
4  St.  1011,  c.  46;  St.  1913,  c.  201;  St.  1915,  c.  285,  §  6. 
6  As  to  who  is  a  mutually  acknowledged  child  see  In  re  White's 
Estate,  84  S.E.  360. 


INHERITANCE  TAXES  71 

Collaterals,   including   brother  or  sister  or  their 
descendants  — 

Twenty -five  thousand  dollars  or  less 3% 

Excess  over  $  25,000  and  up  to  $100,000 4% 

Excess  over    100,000  and  up  to    250,000 5% 

Excess  over    250,000  and  up  to    500,000 6% 

Excess  over    500,000 7% 

No  exemption. 

All  others  — 

Twenty-five  thousand  dollars  or  less 5% 

Excess  over  $  25,000  and  up  to  $100,000 6% 

Excess  over    100,000  and  up  to    250,000 7% 

Excess  over    250,000  and  up  to    500,000 8% 

Excess  over    500,000 9% 

No  exemption. 

The  exemption  applies  to  each  individual  share  and 
not  to  the  estate  as  a  whole. 

North  Carolina  taxes  stock  in  a  North  Carolina  cor- 
poration owned  by  a  non-resident.  It  holds  the  corpora- 
tion responsible  if  it  permits  the  transfer  of  such  stock 
before  the  tax  is  paid.  The  statute  applies  to  the  trans- 
fer by  the  corporation  of  bonds  as  well,  and  a  tax  is  being 
collected  on  bonds  of  North  Carolina  corporations 
owned  by  non-residents.  The  tax  is  not  claimed  on  stock 
of  foreign  corporations  owning  property  in  the  State, 
but  does  apply  to  either  real  or  personal  property  situ- 
ated in  the  State  and  belonging  to  non-residents.1 

28.  NORTH  DAKOTA 

North  Dakota  adopted  a  collateral  inheritance  tax  in 
1903,2  which  in  1913  3  was  extended  to  direct  inherit- 
ances.' The  new  act  is  at  a  progressive  rate  and  classifies 

1  Norris  v.  Durfey,  84  S.E.  687. 

1  St.  1903,  c.  171. 

8  St.  1913,  c.  185.   See  Malin  v.  La  Moure  County,  145  N.W.  582. 


72  INHERITANCE  TAXES 

the  various  degrees  of  relationship  more  minutely  than 
does  any  other  State.  The  authors  of  the  bill  seem  in 
fact  to  have  taken  so  much  pains  with  this  feature  that 
they  omitted  entirely  transfers  to  strangers  in  blood  of 
the  decedent,  although  the  State  Tax  Commission  is  col- 
lecting tax  on  such  transfers. 

A  specially  heavy  rate  of  twenty-five  per  cent  is  im- 
posed on  aliens,  which  provision  is,  to  say  the  least,  of 
doubtful  validity  and  certainly  could  not  be  enforced 
against  the  citizens  of  countries  having  treaty  rights  to 
equality  of  taxation.1 

The  following  taxes  are  imposed:  — 

Direct  inheritances,  to  husband  or  wife,  father, 
mother,  lineal  descendant,  adopted  child  or  his 
lineal  descendant  — 

Not  exceeding  $100,000 1% 

$100,000  to  $250,000 2% 

250,000  to    500,000 2|% 

Over  $500,000 3% 

Exemptions  — 

To  husband  or  wife,  $20,000. 
To  others  in  this  class,  $10,000. 

Collateral  inheritances,  to  brother  or  sister,  wife 
or  widow  of  a  son,  or  husband  of  a  daughter  of 
decedent  — 

Not  exceeding  $25,000 \\% 

$  25,000  to  $  50,000 2j% 

50,000  to    100,000 3% 

100,000  to    500,000 3f% 

Over  $500,000 4^% 

Exemption,  $500. 

1  See  Blakemore  and  Bancroft  on  Inheritance  Taxes,  §  61.  The 
Secretary  of  State  of  the  United  States  has  recently  ruled  that  Canada 
has  never  accepted  the  treaty  of  March  2,  1899,  and  therefore  this 
alien  tax  is  enforceable  against  Canadians.  This  seems  fair,  as  many 
Canadian  acts  also  discriminate  against  aliens. 


INHERITANCE  TAXES  73 

To  brother  or  sister  of  father  or  mother  or  descend- 
ant— 

Not  exceeding  $25,000 3% 

$  25,000  to  $  50,000 4f% 

50,000  to    100,000 6% 

100,000  to    500,000 1\% 

Over  $500,000 9% 

No  exemption. 

To  any  other  collateral  relative  or  to  blood  of  dece- 
dent or  body  politic  or  corporate  — 

Not  exceeding  $25,000 5% 

$  25,000  to  $  50,000 6% 

50,000  to    100,000 9% 

100,000  to    500,000 12% 

Over  $500,000 15% 

No  exemption. 

To  aliens  or  corporations  organized  outside  the 
United  States 25% 

The  exemptions  are  based  on  the  individual  shares 
and  not  on  the  entire  estate. 

A  local  court  has  recently  held  that  no  property  of 
non-residents  can  be  taxed  under  this  law  save  stocks  or 
bonds  of  foreign  or  domestic  corporations.  This  is  on 
account  of  a  curious  provision  of  the  act  taxing  a  trans- 
fer "of  property  within  the  State  or  its  jurisdiction, 
whether  the  ownership  of  or  interest  in  such  property  be 
evidenced  by  certificate  of  stock  or  bonds  of  foreign  or 
domestic  corporations  and  the  decedent  was  a  non- 
resident." North  Dakota,  therefore,  is  specially  severe 
on  non-residents,  taxing  their  stock  in  North  Dakota 
corporations  and  also  their  stock  in  foreign  corporations 
which  own  property  in  the  State.1 

The  new  act  contains  an  attempt  to  protect  residents 
from  double  taxation  by  exempting  tangible  personal 
1  As  to  the  validity  of  this  tax  see  ante,  p.  12. 


74  INHERITANCE  TAXES 

property  of  a  resident  decedent  when  the  property  is 
located  without  the  State  and  has  there  paid  a  tax,  pro- 
vided the  laws  of  that  State  allow  a  like  exemption. 
This  is  a  curious  inversion  of  the  usual  reciprocal  provi- 
sion applicable  to  the  property  of  non-residents. 

29.  OHIO 

Ohio  imposed  a  collateral  inheritance  tax  in  1893. l  In 
1894 2  it  was  the  first  State  to  tax  direct  inheritances, 
and  was  also  the  first  State  to  adopt  rates  increasing 
progressively  according  to  the  size  of  the  estate.  The 
act  was  held  unconstitutional  in  1895,3  on  account  of  the 
progressive  feature,  and  because  it  was  not  provided 
that  the  exemption  ($20,000)  should  be  deducted  from 
all  estates  exceeding  that  amount.  This  decision  has  not 
been  generally  followed  in  other  jurisdictions. 

In  1904 4  a  uniform  tax  of  two  per  cent  was  imposed 
on  direct  inheritances  with  an  exemption  of  $300.  This 
was  repealed  in  1906.6 

At  present  collateral  inheritances  only  are  taxed.  The 
rate  is  uniformly  five  per  cent  and  the  exemption  is  $500, 
which  applies  to  the  estate  as  a  whole,  not  to  the  indi- 
vidual shares.  The  inheritances  which  are  altogether 
exempt  are  those  to  father,  mother,  husband,  wife, 
lineal  descendant,  or  adopted  child. 

A  peculiar  provision 6  directs  that  where  a  life  estate 
or  term  for  years  is  given  to  exempt  heirs  and  the  re- 
mainder to  collaterals  or  strangers  the  value  of  the  prior 
estate  together  with  $500  shall  be  deducted  from  the 
appraisal  of  the  property. 

1  St.  1893,  p.  14.  «  St.  1894,  p.  166. 

»  State  ».  Ferris,  53  Ohio  St.  314.  4  St.  1904,  p.  398. 

8  St.  1906,  p.  229.  •  St.  1913,  p.  463. 


INHERITANCE  TAXES  75 

Stock  in  an  Ohio  corporation  owned  by  a  non-resident 
is  not  taxed,  but  Ohio  real  estate  owned  by  a  non-resi- 
dent is  subject  to  the  inheritance  tax. 


SO.  OKLAHOMA 

Oklahoma  did  not  wait  long  after  its  admission  to  the 
Union  before  adopting  an  inheritance  tax  law.  This  act, 
passed  in  1908,1  apparently  provided  for  arithmetical 
progression  in  the  rate  of  tax  according  to  the  value  of 
the  share  up  to  one  hundred  per  cent,  but  the  Supreme 
Court  sheared  off  this  feature  by  some  judicious  inter- 
pretation,2 whereupon  the  Legislature  passed  an  en- 
tirely new  statute 3  with  high  progressive  rates,  framed 
in  accordance  with  the  Wisconsin  law.  The  proportional 
taxation  of  intangible  property  of  non-residents  is 
effected  by  defining  intangible  as  tangible  property. 

It  provides  for  the  following  taxes:  — 

Direct  inheritances,  including  father,  mother, 
husband,  wife,  child,  brother,  sister,  wife  or 
widow  of  a  son,  or  husband  of  a  daughter,  or  to 
adopted  or  mutually  acknowledged  child,  or  to 
lineal  descendant  — 

Not  exceeding  $25,000 1% 

$25,000  to  $  50,000 2% 

50,000  to    100,000 3% 

Exceeding    100,000 4% 

Exemptions  — 
To  wife,  $15,000. 
To  child,  $10,000. 
To  others  in  this  class,  $5000. 


1  St.  1907-08,  c.  81,  Art  11.    Compiled  Laws  of  1909,  Art.  xiv, 
§§  7712-7737. 
1  McGannon  v.  State,  33  Old.  145.  »  St.  1915,  c.  393. 


76  INHERITANCE  TAXES 

Collateral  inheritances  and  strangers  — 

Not  exceeding  $2500 exempt 

$    2500  to  $  25,000 5% 

25,000  to      50,000 6% 

50,000  to    100,000 8% 

Exceeding    100,000 10% 

The  stock  of  foreign  corporations  doing  business  or 
owning  property  in  the  State  is  assessed  in  proportion 
to  its  percentage  of  business  in  the  State.  The  corpora- 
tions are  liable  for  the  collection  of  the  tax  as  usual. 

Stock  in  Oklahoma  corporations  owned  by  non- 
residents is  of  course  taxable,  and  no  safe-deposit  com- 
pany, bank,  corporation,  or  person  having  securities  or 
assets  of  a  decedent  can  deliver  the  same,  without  per- 
sonal liability,  unless  first  giving  ten  days'  notice  to  the 
Attorney-General  of  the  time  and  place  of  transfer. 

The  new  act  appears  to  follow  the  vicious  provision  of 
the  Michigan  law  requiring  ancillary  probate  in  Okla- 
homa in  order  to  settle  the  tax  on  estates  of  non-resi- 
dents. This  means  various  attorneys'  and  court  fees  all 
out  of  proportion  in  most  cases  to  the  amount  involved. 
It  is  an  entirely  unnecessary  hardship  on  the  estates  of 
non-residents,  but  a  boon  to  struggling  Oklahoma  law- 
yers. When  great  States  like  New  Jersey  collect  annu- 
ally huge  sums  without  any  such  procedure,  is  there  any 
real  reason  for  the  requirement  in  Oklahoma? 

31.  OREGON 

Oregon  enacted  its  inheritance  tax  in  1903,1  using  the 
Illinois  statute  of  1895  as  a  model.  It  has  since  been 
substantially  amended.2 

1  St.  1903,  p.  49. 

2  St.  1905,  c.  178,  309;  St.  1909.  c.  15,  211.  Cf.  St.  1915,  c.  42,  as 
to  lien  and  limitations. 


INHERITANCE  TAXES  77 

The  following  taxes  are  imposed: l  — 

Direct  inheritances,  including  inheritances  to 
grandparent,  parent,  husband,  wife,  child, 
brother,  sister,  wife  or  widow  of  son,  husband 
of  daughter,  adopted  or  acknowledged  child, 

lineal  descendant 1% 

Exemption,  estates  less  than  $10,000  not 
taxed.  Tax  is  on  excess  over  $5000  to  each 
person. 

Collateral  inheritances  — 

Inheritances  to  uncle,  aunt,  nephew,  niece  and 

their  lineal  descendants 2% 

Exemption,  estates  less  than  $5000  are  not 
taxed.  Tax  is  on  excess  over  $2000  to  each 
person. 

All  other  inheritances  — 

Under  $10,000 3% 

From  $10,000  to  $20,000 4% 

From    20,000  to    50,000 5% 

Over  $50,000 6% 

Exemption  —  Tax  is  levied  only  when  the 
inheritance  exceeds  $500;  estates  less  than 
$500  are  not  taxed. 

Stock  in  an  Oregon  corporation  owned  by  a  non- 
resident is  subject  to  the  tax,  but  stock  in  foreign  cor- 
porations owned  by  non-residents  is  not  taxed  simply 
because  the  corporation  owns  property  in  the  State. 
Oregon  real  estate  is  subject  to  the  tax,  although  owned 
by  non-residents.  The  exemptions  are  figured  on  the 
share  of  each  beneficiary.  A  corporation  is  responsible  if 
it  transfers  any  taxable  securities  for  a  non-resident 
before  the  tax  is  paid.  Every  estate  is  required  to  file  a 
complete  inventory. 

i  St.  1905,  c.  178,  309;  St.  1909,  c.  15,  211.  Cf.  St.  1915,  c.  42,  as 

to  lien  and  limitations. 


78  INHERITANCE  TAXES 

32.  PENNSYLVANIA 

THE  PIONEER  WHOSE  INTELLIGENT  EXAMPLE  HAS 
FOUND  SCANT  FOLLOWING 

Pennsylvania,  the  first  State  to  enact  an  inheritance 
tax  law,  is  one  of  the  few  States  which  have  shown  sanity 
in  legislation  and  interpretation.  Direct  inheritances 
and  the  personal  property  of  non-residents  are  very 
properly  let  alone,  and  the  law  has  been  so  construed  as 
to  avoid  double  taxation. 

The  original  law  was  enacted  in  Pennsylvania  in  1826, 
and,  with  very  few  changes,  it  is  the  law  to-day.  The 
law  was  codified  in  1887, l  and  slightly  amended  in  1905  2 
and  in  1911.8 

Collateral  inheritances  only  are  taxed.  The  rate  is 
uniformly  five  per  cent  and  the  exemption  is  $250.  The 
inheritances  not  taxed  are  those  to  father,  mother,  hus- 
band, wife,  child,  adopted  child,3  step-child,4  illegiti- 
mate child  taking  from  its  mother,5  lineal  descendant, 
children  of  former  husband  or  wife,*  and  daughter-in- 
law.  It  has  been  held  that  inheritances  to  a  grandpar- 
ent, and  a  son's  widow  who  has  remarried,  are  taxable.7 

No  attempt  is  made  to  tax  stock  in  Pennsylvania  cor- 
porations owned  by  a  non-resident,  and  securities  kept 
in  the  State  by  a  non-resident  are  not  subject  to  the 
tax.8  This  has  been  an  important  factor  in  the  great 
growth  of  the  safe-deposit  business  of  the  Philadelphia 
trust  companies. 

Act  of  May  6,  1887.  P.L.  79.      2  Act  of  AprU  22, 1905,  P.L.  258. 
St.  1911,  p.  112.  4  Com.  c.  Randall,  225  Pa.  197. 

Com.  v.  Mackey,  222  Pa.  St.  613,  72  Atl.  250;  St.  1901,  c.  325. 
St.  1905,  c.  181. 

McDowell  v.  Adams,  45  Pa.  430;  Com.  P.  Nancrede,  32  Pa.  389; 
Com.  v.  Powell,  51  Pa.  438. 
8  Orcutt's  Appeal,  97  Pa.  179. 


INHERITANCE  TAXES  79 

There  was  a  case  where  a  non-resident  had  an  agent  in 
Pennsylvania  with  very  broad  powers  to  buy  and  sell 
securities,  in  which  it  was  held  that  the  securities  held 
by  the  agent  were  taxable  in  Pennsylvania.1  It  was  later 
pointed  out  that  this  case  must  rest  on  its  own  peculiar 
facts  and  does  not  affect  the  general  Pennsylvania  doc- 
trine that  securities  of  a  non-resident,  though  physically 
within  the  State,  are  not  subject  to  the  inheritance  tax.2 
This  does  not  apply  to  tangible  personal  property  within 
the  State.3  Real  estate  in  Pennsylvania  is  subject  to  the 
tax,  although  owned  or  possessed  by  a  non-resident  de- 
cedent, unless  converted  into  personalty  by  a  direction 
in  the  will  to  sell  it,4  while  real  estate  of  a  resident  not 
situated  in  the  State  is  not  subject  to  tax.5 

It  is  refreshing  to  find  the  courts  in  at  least  one  State 
insisting  that,  if  personal  property  of  residents  held  out- 
side of  the  State  is  to  be  taxed  on  the  theory  that  per- 
sonal property  follows  the  domicile  of  the  owner,  the  logi- 
cal consequence  of  the  theory  is  that  personal  property 
of  non-residents  within  the  State  is  not  taxable.6  Mis- 
souri and  Pennsylvania  seem  to  be  the  only  States  in  this 
country  which  maintain  the  doctrine  that  the  inherit- 
ance tax  is  a  tax  on  property  rather  than  on  the  transfer.7 

A  direct  inheritance  tax  law  passed  in  1897,  and  im- 
posing a  uniform  tax  of  two  per  cent  on  personal  prop- 
erty only,  was  held  unconstitutional.8 

1  Lewis's  Estate,  203  Pa.  211. 

*  Schoenberger's  Estate,  221  Pa.  112. 

»  Small's  Appeal,  151  Pa.  1. 

4  Schoenberger's  Estate,  221  Pa.  112. 

6  In  re  Marr,  240  Pa.  38;  In  re  Crozer's  Estate,  97  All.  1047,  where 
it  is  not  sold  for  payment  of  legacies. 

9  Cf.  Coleman's  Estate,  159  Pa.  231. 

7  Cf.  Blakemore  and  Bancroft  on  Inheritance  Taxes,  §  9. 

8  Cope's.  Estate,  191  Pa.  1. 


80  INHERITANCE  TAXES 

It  is  somewhat  interesting  to  find  that  the  Pennsyl- 
vania law  —  which  is  moderate  in  its  demands,  exempts 
direct  inheritances  altogether,  and  lets  non-residents 
alone  — has  produced  from  $1,000,000  to  $1,500,000 
annually  for  many  years,  a  much  greater  sum  than  the 
inheritance  tax  law  of  any  of  the  other  States  except 
New  York  has  been  realizing.  It  may  be  noted  that 
Pennsylvania  has  enacted  a  stock  transfer  tax  which 
went  into  effect  January  1,  1916. L 

33.  PORTO  Rico 

Porto  Rico  has  had  a  progressive  inheritance  tax  since 
1901  imposed  only  on  real  estate  in  Porto  Rico,  whether 
belonging  to  residents  or  not,  and  on  personal  property 
of  residents.2 

The  following  taxes  are  now  imposed:  — 

To    husband    and    wife,    all    lineal    descendants, 
whether  legitimate  or  illegitimate  — 

Not  exceeding  $5000 1% 

$    5000  to  $  20,000 \\% 

20,000  to      50,000 2% 

50,000  to    100,000 3% 

Exceeding    100,000 4% 

Exemptions  —  To  wife,  child,  grandchild,  or 
adopted  child  of  male  decedent,  $5000. 
To  all  others,  $200. 

To  all  others  - 

Not  exceeding  $5000 8% 

$    5000  to  $  20,000 4£% 

20,000  to      50,000 6% 

50,000  to    100,000 9% 

Exceeding    100,000 12% 

Exemption,  $200. 

1  St.  1915,  p.  828. 

1  Porto  Rico  Rev.  St.  of  1911,  §§  3075-3086;  St.  1916,  c.  62. 


INHERITANCE  TAXES  81 

Exemptions  are  to  be  deducted  from  each  share  in 
estimating  the  taxes.  The  progressive  rate  is  in  each 
case  only  on  the  excess  above  the  amount  limited  at  the 
lower  rate. 

One  peculiar  feature  of  this  law  is  that  the  commis- 
sions or  compensation  of  an  executor,  administrator,  or 
trustee  are  treated  as  a  legacy  and  subject  to  tax  as  such. 

Taxes  are  payable  to  the  treasurer. 

34.  RHODE  ISLAND 

This  State  has  at  last  followed  its  New  England 
neighbors  and  imposed  an  inheritance  tax  with  gradu- 
ated rates,  and  with  two  outstanding  features,  one  of 
which  is  without  precedent.  The  law  imposes  two  sepa- 
rate taxes  —  one  on  the  right  to  transfer  and  the  other 
on  the  right  to  receive.  The  first  is  imposed  on  the  estate 
and  the  second  on  the  share  of  the  beneficiary.  The  law 
also  includes  the  so-called  ratio  provision  in  the  treat- 
ment of  the  estates  of  non-residents,  which  is  of  doubtful 
validity.1  This  allows  a  non-resident  only  such  propor- 
tion of  the  exemption  as  the  value  of  his  real  estate  in 
Rhode  Island  bears  to  his  entire  estate  wherever  located 
and  applies  both  to  the  estate  tax  and  to  the  beneficiary 
tax. 

The  tax  on  non-residents  is  confined,  however,  to 
interests  in  real  estate. 

The  statute  2  imposes  the  following  rates :  — 

,  On  the  right  to  transfer  the  net  estate 3% 

Exemption,  $5000. 

On  the  right  to  receive  — 

To    grandparent,    parent,    husband,    wife,    child, 
brother,  sister,  nephew,  niece,  wife  or  widow  of 

1  See  ante,  p. 12.  *  St.  1916,  c.  1339. 


82  INHERITANCE  TAXES 

son,  husband  or  widower  of  daughter,  or  any 
child  adopted  or  acknowledged,  or  any  lineal 
descendant  — 

Not  exceeding  $50,000 \% 

$50,000  to  $    250,000 1% 

250,000  to       500,000 l\% 

500,000  to       750,000 2% 

750,000  to    1,000,000 2|% 

Exceeding,     1,000,000 3% 

Exemption,  $25,000. 

To  all  others  — 

Not  exceeding  $50,000 5% 

$50,000  to  $    250,000 6% 

250,000  to    1,000,000 7% 

Exceeding      1,000,000 8% 

Exemption,  $1000. 

35.  SOUTH  DAKOTA 

This  State  first  adopted  an  inheritance  tax  in  1905,1 
which  has  been  recently  upheld.2  Entirely  new  acts 
were  passed  in  1913  3  and  1915  4  embodying  the  progres- 
sive rate  and  other  modern  features  and  very  closely 
following  the  Minnesota  statute. 

The  following  taxes  are  imposed:  — 

To  wife  or  lineal  issue  — 

Not  exceeding  $15,000 1% 

$15,000  to  $  30,000 \\% 

30,000  to      50,000 2% 

50,000  to    100,000 2£% 

Exceeding    100,000 3% 

Exemption,  $10,000. 

To   husband,   lineal   ancestor,   child   adopted   or 
acknowledged,  or  its  issue  — 
Not  exceeding  $15,000 
$15,000  to  $  30,000 


1  St.  1905,  c.  54.  *  In  re  McKennon.  130  N.W.  S3. 

*  St.  1918,  c.  243.  «  St.  1915,  c.  217. 


INHERITANCE  TAXES  83 

$30,000  to  $  50,000 3% 

50,000  to    100,000 3f% 

Exceeding     100,000 4|% 

Exemptions  —  To    lineal    ancestor    $3000. 
To  all  others  in  above  class,  $10,000. 

To  brother  or  sister  or  descendant,  wife  or  widow  of 
son  or  husband  of  daughter  — 

Not  exceeding  $15,000 3% 

$15,000  to  $  30,000 4^% 

30,000  to      50,000 6% 

50,000  to    100,000 1\% 

Exceeding    100,000 9% 

Exemption,  $1000. 

To  brother  or  sister  of  father  or  mother  or  de- 
scendant — 

Not  exceeding  $15,000 4% 

$15,000  to  $  30,000 6% 

30,000  to      50,000 8% 

50,000  to    100,000 10% 

Exceeding    100,000 12% 

Exemption,  $250. 

To  other  relatives  or  strangers  — 

Not  exceeding  $15,000 5% 

$15,000  to  $  30,000 1\% 

30,000  to      50,000 10% 

50,000  to    100,000 12|% 

Exceeding    100,000 15% 

Exemption,  $100. 

This  State  is  now,  under  the  guidance  of  its  Tax  Com- 
mission, collecting  tax  on  stock  in  South  Dakota  cor- 
porations owned  by  non-resident  decedents,  and  also 
seems  to  be  taxing  bonds  issued  by  domestic  corpora- 
tions held  by  non-resident  decedents. 

The  application  required  for  transfer  provides  for  the 
disclosure  of  the  following  by  non-residents:  — 

Stock  in  South  Dakota  corporations. 
Safety-deposit  boxes  in  South  Dakota. 


84  INHERITANCE  TAXES 

Bonds  issued  by  South  Dakota  debtors. 

Mortgages  on  local  real  estate. 

Money  within  the  State. 

Interest  in  local  partnership  or  association. 

Claims  or  debts  due  from  residents  of  South  Dakota. 

Bank  deposits  in  local  banks  in  the  name  of  the  decedent, 

jointly  or  in  trust. 
South  Dakota  real  estate. 
Property  in  South  Dakota  transferred  in  contemplation  of 

death. 


36.  TENNESSEE 

Tennessee  adopted  a  collateral  inheritance  tax  in 
1891  l  and  extended  the  tax  to  direct  inheritances  in 
1909.2 

The  following  taxes  are  imposed :  — 

Inheritances  to  parent,  husband,  wife,  child  (but 
not  adopted  child),  lineal  descendant  — 

Under  $10,000 exempt 

$10,000  to  $20,000 1% 

Over  $20,000 lj% 

All  other  inheritances 5% 

(Provided  that  no  estate  valued  at  less  than 
$250  shall  be  subject  to  tax.) 

The  statute  is  constitutional  even  in  the  peculiar  pro- 
visions as  to  exemptions.3  The  exemptions  and  the  rates 
apply  to  the  size  of  the  whole  estate  and  not  of  the  indi- 
vidual share  of  the  beneficiary. 

1  St.  1891,  c.  25.  See  St.  1893,  c.  174,  which  with  amendments  is 
still  the  law. 

1  St.  1909,  c.  479.  The  exemption  to  direct  inheritances  was  altered 
from  $5000  to  $10,000  by  St.  1915,  c.  83. 

As  to  collection  by  proceedings  within  one  year  see  Deen  v.  Cren- 
shaw,  158  S.W.  987. 

3  State  P.  Alston,  94  Tenn.  674. 


INHERITANCE  TAXES  85 

The  taxing  authorities  are  collecting  a  tax  on  the 
transfer  of  stock  in  domestic  corporations  owned  by  non- 
residents and  the  tax  applies  to  any  property  in  the 
State  belonging  to  non-residents.  The  tax  is  now  being 
claimed  on  bonds  issued  by  Tennessee  corporations 
owned  by  non-resident  decedents. 

In  appraising  the  share  of  an  annuitant  the  annuity 
tables  are  not  conclusive,  but  the  health,  habits,  and 
occupation  of  the  annuitant  should  be  considered.1 

A  statute  2  exempting  religious,  literary,  and  charit- 
able corporations  was  held  unconstitutional  by  the 
Supreme  Court.3 


37.  TEXAS 

Texas  adopted  a  collateral  inheritance  tax  in  1907. 
Inheritances  to  father,  mother,  husband,  wife,  and 
direct  lineal  descendant  4  are  exempt. 

The  following  taxes  are  imposed: 5  — 

Inheritances  to  lineal  ancestor  (except  father  or 
mother),  brother  or  sister  and  lineal  descendant 
of  same  — 

Under  $      2000 exempt 

Excess  over         2000  up  to  $  10,000 2% 

Excess  over      10,000  up  to      25,000 2^% 

Excess  over      25,000  up  to      50,000 3% 

Excess  over      50,000  up  to    100,000 3|% 

Excess  over    100,000  up  to    500,000 4% 

Excess  over    500,000 5% 

1  Crenshaw  c.  Knight,  156  S.W.  468. 

a  St.  1903,  c.  561.  3  In  re  Speed,  unreported. 

4  An  adopted  child  is  exempt  as  a  lineal  descendant.  State  ». 
Yturria,  189  S.W.  291. 

6  General  Laws  of  Texas,  p.  496;  Acts  First  Called  Session,  30th 
Legislature  (1907),  c.  21. 


86  INHERITANCE  TAXES 

Inheritances  to  uncle  or  aunt  or  their  lineal  de- 
scendants — 

Under  $      1000 exempt 

Excess  over         1000  up  to  $  10,000 8% 

Excess  over      10,000  up  to      25,000 4% 

Excess  over      25,000  up  to      50,000 5% 

Excess  over      50,000  up  to    100,000 6% 

Excess  over    100,000  up  to    500,000 7% 

Excess  over    500,000 8% 

All  other  inheritances  — 

Under  $       500 exempt 

Excess  over          500  up  to  $  10,000 4% 

Excess  over      10,000  up  to      25,000 5\% 

Excess  over      25,000  up  to      50,000 7% 

Excess  over      50,000  up  to    100,000 %\% 

Excess  over    100,000  up  to    500,000 10% 

Excess  over    500,000 12% 

The  exemption  applies  to  each  individual  share,  not 
to  the  estate  as  a  whole. 

Texas  is  now  claiming  a  tax  on  stock  of  a  Texas  cor- 
poration owned  by  a  non-resident,  although  there  is  no 
provision  for  collecting  such  a  tax  through  the  corpora- 
tion, such  as  is  usually  found.  A  tax  is  claimed  on  bonds 
issued  by  Texas  corporations  held  by  non-resident 
decedents  though  some  corporations  will  transfer  regis- 
tered bonds  without  obtaining  waivers.  An  attempt  to 
pass  a  new  law  in  1915  failed. 

38.  UTAH 

Utah  has  had  an  inheritance  tax  since  1901, l  amended 
in  1915  2  by  lowering  the  rate  on  small  shares.  All  in- 
heritances are  taxed  at  the  same  rate. 

1  St.  1901,  c.  62,  amended  by  St.  1903,  c.  93;  St.  1905,  c.  119.  This 
act  is  modelled  after  the  Iowa  statute  and  is  constitutional,  Dixon  v. 
Ricketts,  26  Utah,  215. 

2  St.  1915,  c.  98.  See  also  St.  1915,  c.  28. 


INHERITANCE  TAXES  87 

The  following  taxes  are  imposed:  — 

Exemption,  $10,000. 

$10,000  to  $25,000 8% 

Exceeding  $25,000 5% 

The  exemption  is  figured  on  the  amount  of  the  whole 
estate  and  not  of  the  individual  share,1  and  the  progres- 
sive rate  should  be  figured  in  the  same  way.  A  widow's 
interest  above  her  statutory  third  is  subject  to  tax.2 

Utah  is  collecting  the  tax  on  the  stock  of  domestic 
corporations  owned  by  non-residents,  but  not  on  stock 
of  a  foreign  corporation  owned  by  non-residents  simply 
because  it  owns  property  in  the  State.  Real  estate  in  the 
State  belonging  to  non-residents  is  taxable. 

The  State  does  not,  we  are  advised  by  the  Attorney- 
General,  under  date  of  February  21,  1917,  "assume 
to  collect  an  inheritance  tax  from  estates  owning  reg- 
istered bonds  of  Utah  corporations,  when  said  bonds 
were  not  physically  within  this  State  at  the  time  of 
the  death  of  the  owner." 

39.  VERMONT 
A  STATE  WHICH  LEADS  IN  REFORM 

Vermont's  first  collateral  inheritance  tax  was  enacted 
in  1896  3  and  substantially  amended  in  1904.  Its  main 
features  are  very  similar  to  the  New  Hampshire  statute. 

The  tax  is  on  collateral  inheritances  only,  the  rate  is 
uniformly  five  per  cent,  and  no  amount  is  exempt.  No 
tax  is  levied  on  an  inheritance  to  father,  mother,  hus- 
band, wife,  lineal  descendant,  stepchild,  adopted  child, 

1  Dixon  v.  Ricketts,  26  Utah,  215. 

1  In  re  Bullen's  Estate,  151  Pac.  533. 

3  For  constitutionality  see  Hickok's  Estate,  78  Vt.  259. 


88  INHERITANCE  TAXES 

child  of  stepchild  or  of  adopted  child,  wife  or  widow  of 
son,  husband  of  daughter.1 

Vermont  in  1912  took  the  last  step  toward  fairness  to 
non-residents  by  limiting  the  tax  on  transfers  of  personal 
property  to  resident  decedents.2  This  eliminates  the 
tax  on  stock  in  domestic  corporations  held  by  non- 
residents. A  reciprocal  provision,  that  the  law  should 
not  apply  to  property  located  in  another  State  or  coun- 
try unless  there  exists  in  such  other  State  or  country  a 
reciprocal  law  similar  to  the  Vermont  act,3  was  repealed 
in  1915.4 

If  any  inheritance  tax  has  been  paid  by  either  a  resi- 
dent or  non-resident  to  any  other  State  or  Government, 
except  the  United  States,  on  account  of  the  transfer  of 
securities,  bank  deposits,  or  other  assets,  the  Vermont 
tax  is  limited  to  an  amount  sufficient  to  make  the  total 
tax  five  per  cent. 

Vermont  does  not  tax  the  bank  deposits  of  a  Vermont 
resident  in  another  State  and  this  would  seem  to  apply 
to  securities  outside  the  State  as  well.8 

40.  VIRGINIA 

The  conservative  influence  of  Pennsylvania  has  ex- 
tended to  the  three  neighboring  States  of  Delaware, 
Maryland,  and  Virginia.  These  States  do  not  tax  direct 
inheritances  and  do  not  tax  stock  in  corporations  or- 
ganized under  their  laws  that  is  owned  by  non-residents. 

Virginia  adopted  a  collateral  inheritance  tax  in  1844. 
Its  last  legislation  was  in  19 10.6  The  tax  is  on  collateral 

1  Public  Stats,  c.  38,  §§  821-901,  as  amended  by  Acts  1908,  No.  31, 
approved  January  28,  1909;  St.  1912,  c.  60;  St.  1915,  c.  61. 
1  St.  1912,  c.  60.  8  St.  1912,  c.  60,  §  5. 

4  St.  1915,  c.  61.  •  Joyslin's  Estate,  76  Vt.  88. 

9  Acts  1910,  c.  148,  amending  Acts  1903,  c.  148,  §  44.  For  constitu- 


INHERITANCE  TAXES  89 

inheritances  only,  the  rate  is  uniformly  five  per  cent, 
and  there  is  no  amount  exempted.  The  tax  is  not  levied 
on  an  inheritance  to  grandparents,  parents,  husband, 
wife,  brother,  sister,  or  lineal  descendant.  Stock  of  Vir- 
ginia corporations  owned  by  non-residents  is  not  tax- 
able. 

41.  WASHINGTON 

Washington  adopted  an  inheritance  tax  in  1901,1  with 
important  amendments  in  1905  2  and  1907.3 
The  following  taxes  are  imposed:  4  — 

Direct  inheritances  — 

Including  inheritances  to  father,  mother,  hus- 
band, wife,  lineal  descendant,  adopted  child, 
lineal  descendant  of  adopted  child  — 

Not  exceeding  $10,000 exempt 

Excess  over  $10,000 1% 

Collateral  inheritances  — 

Inheritances  to  collateral  heirs  to  and  including 
the  third  degree  of  relationship  — 

Not  exceeding  $50,000 3% 

Excess  over  $  50,000  up  to  $100,000 4?% 

Excess  over    100,000 6% 

Inheritances  to  collateral  heirs  beyond  the  third 
degree,  or  strangers  — 

Not  exceeding  $50,000 6% 

Excess  over  $  50,000  up  to  $100,000 9% 

Excess  over    100,000 12% 

tionality  of  state  inheritance  tax  see  Miller  v.  Com.,  27  Gratt.  109, 
and  Eyre  v.  Jacob,  14  Gratt.  422.  Right  of  cities  to  levy  such  tax  is 
denied;  Peters  v.  Lynchburg,  76  Va.  927;  Wytheville  v.  Johnson,  108 
Va.  589.  The  tax  on  remainders  is  considered  in  Com.  v.  Wellford, 
76  S.E.  917. 

1  St.  1901,  c.  55,  held  constitutional  in  State  v.  Clark,  30  Wash.  439. 
The  law  applies  to  testate  as  well  as  intestate  estates,  although  the 
word  "inheritances"  was  used  in  the  title.  In  re  White,  42  Wash.  360. 

2  St.  1905,  c.  93,  114.  3  St.  1907,  c.  217. 

4  Revenue  Laws  1907,  §§  204-221.   The  twenty-five  per  cent  tax 
on  collateral  aliens  was  repealed  by  St.  1911,  c.  19. 


90  INHERITANCE  TAXES 

The  exemption  under  direct  inheritances  applies  to 
the  estate  as  a  whole,  not  to  individual  shares,  and  if  the 
Washington  portion  of  the  estate  of  a  non-resident  is 
less  than  this  amount,  the  estate  is  not  taxed. 

Washington  taxes  stock,  but  not  bonds,1  of  a  Wash- 
ington corporation  owned  by  a  non-resident,  but  does 
not  tax  stock  in  foreign  corporations  which  have  prop- 
erty in  the  State  when  the  stock  is  owned  by  non- 
residents. Real  estate  in  the  State  belonging  to  a  non- 
resident is  taxed.  It  is  not  the  practice  to  require  an 
inventory  of  the  entire  estate  before  permitting  the 
corporation  to  transfer  stock  owned  by  a  deceased  non- 
resident. 

42.  WEST  VIRGINIA 

West  Virginia  adopted  a  collateral  inheritance  tax  in 
1887  and  extended  it  to  direct  inheritances  in  1907.  The 
following  taxes  are  imposed: 2  — 

Direct  inheritances  — 
Inheritance  to  widow, 

Under  $  15,000 exempt 

Excess  over      15,000  up  to  $  25,000 1% 

Excess  over      25,000  up  to      50,000 \\% 

Excess  over      50,000  up  to    100,000 2% 

Excess  over    100,000  up  to    500,000 2$% 

Excess  over    500,000 3% 

Inheritances  to  husband,  child,  lineal  descendant, 
lineal  ancestor, 

Under  $10,000 exempt 

Excess  over    10,000  up  to  $25,000 1% 

1  The  State  Board  of  Tax  Commissioners  rules,  under  date  of  Jan- 
uary 25,  1917,  that  a  bond  is  not  an  "obligation"  in  the  State  within 
the  meaning  of  the  statute. 

2  West  Virginia  Code,  c.  83;  Code  Supplement  (1909),  c.  33;  Acts 
1907,  c.  55;  Acts  1909,  c.  63;  Acts  1913,  c.  15. 


INHERITANCE  TAXES  91 

Excess  over  $  25,000  up  to  $  50,000 \\% 

Excess  over      50,000  up  to    100,000 2% 

Excess  over    100,000  up  to    500,000 2|% 

Excess  over    500,000 3% 

Collateral  inheritances  — 

Inheritances  to  brother  or  sister  (not  including 
half  blood), 

Under  $25,000 3% 

Excess  over      25,000  up  to  $  50,000, 4^% 

Excess  over      50,000  up  to    100,000 6% 

Excess  over    100,000  up  to    500,000 1\% 

Excess  over    500,000 9% 

All  other  inheritances, 

Under  $25,000 5% 

Excess  over      25,000  up  to  $  50,000 7^% 

Excess  over      50,000  up  to    100,000 10% 

Excess  over    100,000  up  to    500,000 12^% 

Excess  over    500,000 15% 

The  exemptions  apply  to  the  individual  shares,  not  to 
the  estate  as  a  whole.  The  State  is  collecting  the  inherit- 
ance tax  on  stock  of  corporations  organized  under  the 
laws  of  West  Virginia  belonging  to  non-residents,  but 
not  on  bonds  of  non-residents  issued  by  West  Virginia 
corporations  where  the  bonds  were  not  in  the  State  at 
the  date  of  the  decedent's  death. 

The  following  property  of  all  non-residents  is  speci- 
fically made  taxable:  all  real  estate  and  tangible  prop- 
erty including  money  on  deposit  within  the  State;  all 
intangible  personal  property  including  bonds,  securities, 
shares  of  stock,  and  choses  in  action,  the  evidence  of 
ownership  of  which  is  actually  within  the  State;  stock  in 
West  Virginia  corporations  whether  the  certificates  are 
within  or  without  the  State.  The  retaliative  provision 
designed  to  avoid  double  taxation  of  non-resident  securi- 
ties has  been  omitted.1 

1  St.  1913,  c.  25. 


92  INHERITANCE  TAXES 

Double  taxation  of  personal  property  belonging  to  a 
resident  of  the  State,  but  kept  outside  the  State,  is 
avoided  by  a  provision  that  if  such  property  has  been 
taxed  in  other  States  West  Virginia  will  not  tax  it,  unless 
the  outside  tax  is  less  than  the  West  Virginia  tax,  and 
then  West  Virginia  collects  only  the  difference.1 

A  corporation  is  responsible  for  the  tax  if  it  transfers 
securities  before  the  tax  is  paid  if  it  had  reasonable  cause 
to  know  that  the  property  was  subject  to  the  tax.  It  is 
not  the  practice  to  require  an  inventory  of  the  estate  of 
a  non-resident. 

43.  WISCONSIN 

Wisconsin's  first  inheritance  tax  law,  passed  in  1868, 
amounted  to  little  more  than  a  sliding  scale  of  probate 
fees,  and  after  various  amendments  was  declared  uncon- 
stitutional.2 A  genuine  inheritance  tax,  enacted  in  1899, 
was  declared  unconstitutional  because  the  exemption 
applied  to  the  estate  as  a  whole,  not  to  the  individual 
shares.3  Finally  in  1903  the  Legislature  passed  an  act 
which  satisfied  the  constitutional  requirements.* 

The  following  taxes  are  imposed: 6  — 

Direct  inheritances  — 
Inheritance  to  widow  — 

First  $10,000 exempt 

Excess  over    10,000  up  to  $25,000 1% 

i  Sec.  6.  •  State  c.  Mann,  76  Wis.  469. 

8  Black  v.  State,  113  Wis.  205, 

4  Nunnemacher  v.  State,  129  Wis.  190. 

5  Laws  1903,  c.  44,  249;  Laws  1905,  c.  96;  Laws  1907,  c.  500;  Laws 
1909,  c.  38,  504;  Wisconsin  Statutes,  §§  1087-1  to  1087-24  inc.,  162, 
3818,  3813a,  and  3871a.   St.  1911,  c.  450,  530;  St.  1913,  c.  627,  643, 
763;  St.  1915,  c.  253,  498. 

Tax  on  transfer  resulting  from  failure  to  appoint  is  valid  under  St. 
1913,  §§  1087-1.  Montague  v.  State,  157  N.W.  508. 


INHERITANCE  TAXES 


93 


Excess  over  $  25,000  up  to  $  50,000 \\% 

Excess  over      50,000  up  to    100,000 2% 

Excess  over    100,000  up  to    500,000 2?% 

Excess  over    500,000 3% 

Inheritances  to  husband,  lineal  issue,  lineal  an- 
cestor, adopted  or  mutually  acknowledged 
child  and  lineal  issue  of  such  child  — 

First  $    2,000 exempt 

Excess  over        2,000  up  to  $  25,000 1% 

Excess  over      25,000  up  to      50,000 \\% 

Excess  over      50,000  up  to    100,000 2% 

Excess  over    100,000  up  to    500,000 2^% 

Excess  over    500,000 3% 

4  Collateral  inheritances  — 

Inheritances  to  brother,  sister,  or  their  descend- 
ants, wife  or  widow  of  son,  husband  of  daugh- 
ter- 
First  $       500 exempt 

Excess  over          500  up  to  $  25,000 \\% 

Excess  over      25,000  up  to      50,000 2j% 

Excess  over      50,000  up  to    100,000 3% 

Excess  over    100,000  up  to    500,000 3|% 

Excess  over    500,000 4?% 

Inheritances  to  brother  or  sister  of  father  or 
mother  or  their  descendants  — 

First  $       250 exempt 

Excess  over  250  up  to  $  25,000 3% 

Excess  over      25,000  up  to     50,000 4  3% 

Excess  over      50,000  up  to    100,000 6% 

Excess  over    100,000  up  to    500,000 7^% 

Excess  over    500,000 9% 

Inheritances  to  brother  or  sister  of  grandfather 
or  grandmother  or  their  descendants  — 

First  $       150 exempt 

Excess  over  150  up  to  $  25,000 4% 

Excess  over      25,000  up  to      50,000 6% 

Excess  over      50,000  up  to    100,000 8% 

Excess  over    100,000  up  to    500,000 10% 

Excess  over    500,000 12% 


94  INHERITANCE  TAXES 

All  other  inheritances  — 

First  $       100 exempt 

Excess  over  100  up  to  $  25,000 5% 

Excess  over      25,000  up  to      50,000 t\% 

Excess  over      50,000  up  to    100,000 10% 

Excess  over    100,000  up  to    500,000 1*3% 

Excess  over    500,000 15% 

The  exemption  applies  to  each  individual  share,  not  to 
the  estate  as  a  whole.  If  the  Wisconsin  portion  of  an 
inheritance  is  less  than  the  exempted  amount,  Wisconsin 
imposes  no  tax.  The  exemption  is  apportioned  to  the 
share  of  the  Wisconsin  property  of  a  resident  as  com- 
pared with  his  share  of  the  whole  estate,  as  no  tax  is 
levied  on  property  of  a  resident  decedent  located  with- 
out the  State  when  the  transfer  of  such  property  is  sub- 
ject to  an  inheritance  tax  where  located,  which  tax  has 
been  paid;  provided  such  property  is  not  outside  the 
State  temporarily  and  provided  the  laws  of  the  State 
where  it  is  located  allow  a  like  exemption.  This  provi- 
sion was  added  in  1913  as  a  step  toward  avoiding  double 
taxation.1 

This  State  makes  a  special  point  of  prompt  issue  of 
waivers  for  transfer  in  the  estates  of  non-residents. 

Wisconsin  is  notable  as  being  the  first  to  attempt  by 
direct  statute  to  impose  an  inheritance  tax  on  insurance 
policies.  These  are  generally  held  not  to  be  a  part  of  the 
estate,2  but  a  recent  statute  s  provides  that  insurance 
payable  upon  the  death  of  any  person  shall  be  deemed 
part  of  his  estate  and  subject  to  tax  as  such. 

Wisconsin  taxes  stock  in  a  Wisconsin  corporation 
owned  by  a  non-resident.  So  stock  of  a  non-resident  in  a 

1  St.  1913.  c.  627,  §2. 

*  Cf.  Blakemore  and  Bancroft  on  Inheritance  Taxes,  p.  94.    Tyler 
*.  Treasurer  (Mass.  1917),  115  N.E.  300. 

*  St.  1915,  c.  253. 


INHERITANCE  TAXES  95 

foreign  corporation  owning  property  in  Wisconsin  is  also 
taxable.1  The  law  provides  for  the  payment  of  such  tax 
at  a  value  proportionate  to  the  Wisconsin  property  as 
compared  to  the  entire  property  of  the  corporation.  So 
the  real  estate  of  a  non-resident  is  subject  to  tax. 

A  corporation  or  individual  that  transfers  or  delivers 
any  securities  or  assets  of  a  non-resident  without  first 
notifying  the  Attorney-General,  and  then  receiving  his 
permission  to  do  so,  is  responsible  for  the  tax.  It  is  not 
the  practice  to  require  a  complete  inventory  of  a  non- 
resident's estate. 


44.  WYOMING 

Wyoming  adopted  an  inheritance  tax  in  1903,  which 
was  modified  in  1909. 
The  following  taxes  are  imposed: 2  — 

Direct  inheritances,  including  inheritances  to 
father,  mother,  husband,  wife,  child,  brother, 
sister,  wife  or  widow  of  son,  husband  of  daugh- 
ter, adopted  or  acknowledged  child,  lineal  de- 
scendant — 

If  entire  estate  is  under  $10,000 exempt 

On  excess  over  $10,000 2% 

Collateral  inheritances,  including  all  other  in- 
heritances    5% 

If  entire  estate  is  under  $500  it  is  not  taxed. 

Wyoming  is  now  collecting  a  tax  on  stock  of  a  Wyom- 
ing corporation  owned  by  a  non-resident  if  the  stock 
certificate  is  kept  outside  the  State,  and  the  statute 
contains  the  usual  provision  holding  the  corporation 
responsible  for  the  collection  of  the  tax. 

1  That  such  tax  is  illegal,  see  ante,  p.  12. 
>  Compiled  Statutes  (1910),  c.  185. 


CHAPTER  VIII 

THE  FEDERAL  LAW:  A  UNIQUE  DOCUMENT 

CONGRESS,  on  September  8,  1916,  enacted,  in  a  time 
of  peace  and  prosperity,  an  inheritance  tax  law  in  many 
respects  of  a  novel  character.  It  was  drafted  and 
pushed  through  Congress  during  the  heat  of  a  Presi- 
dential campaign  by  the  Democrats  and  opposed  by 
the  Republicans  as  a  strict  party  measure  as  a  part  of  a 
general  omnibus  bill  for  overcoming  a  large  deficit  in 
the  National  Treasury. 

It  had  always  been  taken  for  granted  that  inheritance 
taxes  should  in  normal  times  be  left  to  the  States  and 
only  enacted  by  the  Federal  Government  as  an  emer- 
gency measure  as  was  done  during  the  Civil  and  the 
Spanish  Wars.  This  new  law  overturns  this  precedent, 
and  it  was  even  predicted  in  the  congressional  debates 
that  all  inheritance  taxation  would  be  shortly  taken  over 
by  the  Federal  authority,  the  proceeds  paid  to  the  Na- 
tional Government,  and  among  the  States. 

The  new  law  is  fundamentally  different  from  existing 
legislation  in  that  it  is  imposed  on  the  estate  itself  in- 
stead of  on  each  distributive  share.1  The  drastic  provi- 
sions for  collection  require  the  executor,  within  thirty 
days  of  his  appointment  or  of  coming  into  possession  of 
any  property  of  the  decedent,  to  give  notice  to  the  col- 
lector, to  make  returns  of  the  gross  and  net  estate  where 

1  The  only  precedent  in  this  country  for  this  provision  seems  to  be 
the  recent  Rhode  Island  law  of  1916.  See  ante,  p.  81.  The  early 
probate  fees  were  of  a  different  nature. 


INHERITANCE  TAXES  97 

the  gross  estate  exceeds  $60,000,  or  where  the  estate  is 
subject  to  tax,  and  further  provides  that  the  tax  is  due 
one  year  after  the  decedent's  death,  and  ninety  days 
later  the  collector  shall,  in  case  of  non-payment,  com- 
mence proceedings  to  sell  the  assets  of  the  estate  "unless 
there  is  reasonable  cause  for  further  delay." 

The  tax  remains  a  lien  on  the  "gross  estate"  of  the 
decedent  for  ten  years  after  his  death  and  is  a  lien  on  all 
property  transferred  by  the  decedent  within  two  years 
before  his  death,  except  in  case  of  a  bona-fide  sale  for  a 
fair  consideration.  The  latter  provision  seems  to  place 
on  the  parties  the  burden  of  proving  that  a  sale  was  bona 
fide.  The  result  may  well  be  that  wealthy  men  may  have 
difficulty  in  selling  their  property,  as  cautious  convey- 
ancers might  properly  require  evidence  of  record  that  a 
conveyance  was  made  "  for  a  fair  consideration,"  in  or- 
der to  guard  against  this  lien. 

The  rates  are  progressive  and  based  solely  on  the  size 
of  the  net  estate  and  not  on  the  size  of  the  distributive 
shares  or  the  relationship  of  the  beneficiaries. 

They  are  as  follows  on  residents:  — 

Not  exceeding  $50,000 exempt 

$     50,000  to  $    150,000 2% 

150,000  to       250,000 3% 

250,000  to       450,000 4% 

450,000  to    1,000,000 5% 

1,000,000  to    2,000,000 6% 

2,000,000  to    3,000,000 7% 

3,000,000  to    4,000,000 8% 

4,000,000  to    5,000,000 9% 

Exceeding         5,000,000 10% 

The  progressive  rates  in  each  case  are  imposed  only  on 
that  portion  of  the  estate  exceeding  the  lower  rate.  For 
example,  in  an  estate  of  $300,000,  $50,000  is  exempt, 


98  INHERITANCE  TAXES 

$100,000  is  taxable  at  2  per  cent,  $100,000,  at  3  per  cent, 
and  $50,000  at  4  per  cent. 

Non-residents  are  entitled  to  no  exemption,  but  must 
pay  1  per  cent  on  the  first  $50,000  and  the  progressive 
rates  applied  to  residents,  but  the  tax  is  levied  only  on 
the  property  located  in  the  United  States.1 

Congress  amended  this  law  on  March  3,  1917,  by  im- 
posing the  following  rates  "  upon  the  transfer  of  the  net 
estate  of  every  decedent  dying  after  the  passage  of  this 
act,  whether  a  resident  or  non-resident  of  the  United 
States":  — 


Not  exceeding  $50,000 

$      50,000  to  $    150,000  ...................     3% 

150,000  to       250,000  ...................  4$% 

250,000  to       450,000  ...................     6% 

450,000  to    1,000,000  ...................  7$% 

1,000,000  to    2,000,000  ...................     9% 

2,000,000  to    3,000,000  ...................  10$% 

8,000,000  to    4,000,000  ...................   12% 

4,000,000  to    5,000,000  ...................  18$% 

Exceeding         5,000,000  ...................  15% 

The  net  estate  is  defined  by  the  original  act  to  include 
only  values  over  $50,000  of  the  estates  of  residents,  so 
this  act  continues  the  exemption  of  $50,000  and  in- 
creases the  rates  fifty  per  cent.  The  same  discrimination 
against  non-residents  is  continued,  as  they  are  allowed 
no  exemptions. 

There  would  appear  to  be  the  gravest  doubt  as  to  the 
constitutionality  of  the  law,  with  little  guide  in  the  way 
of  precedents,  as  it  seems  to  have  been  framed  without 
any  reference  to  prior  National  or  State  legislation  on 
the  subject.  Two  obvious  attacks  on  the  law  are,  first, 

1  This  feature  of  the  tax  appears  to  be  a  clear  violation  of  certain 
treaties.  Cf.  Blakemore  and  Bancroft  on  Inheritance  Taxes,  §  61.  . 


INHERITANCE  TAXES  99 

that  it  is  a  direct  tax,1  and  as  such  should  be  apportioned 
among  the  several  States;  and  second,  that  making  its 
graduated  tax  depend  on  the  size  of  the  estate  rather 
than  on  the  size  of  the  distributive  share  is  so  grossly 
unfair  as  to  be  void  as  lacking  in  uniformity,  for  which 
view  there  are  various  precedents.2 

One  curious  effect  of  the  law  is  that  it  bears  solely  on 
the  residue,  and  as  probably  nine  wills  out  of  ten  leave 
the  residue  to  the  wife  or  children  of  the  testator,  this 
results  in  a  tax  on  lineals  exempting  collaterals  and 
strangers. 

The  law  as  first  passed  was  expected  to  yield  an  an- 
nual revenue  of  $54,000,000,  while  all  the  States  to- 
gether have  been  collecting  only  $28,000,000  annually 
from  this  source. 

1  As  to  what  is  a  direct  tax  on  inheritances,  see  Cotton  p.  Rex  (1914), 
A.C.  176. 

*  See,  for  example,  Black  v.  State.  113  Wis.  205. 


CHAPTER  IX 

A  MOVEMENT  FOR  A  UNIFORM  INHERITANCE 
TAX  LAW 

THE  demand  for  a  uniform  inheritance  tax  law  found 
expression  in  the  report  of  a  committee  on  the  subject 
made  to  the  Fourth  International  Tax  Conference  held 
at  Milwaukee,  Wisconsin,  in  the  summer  of  1910. 
Thirty-five  States,  two  Canadian  Provinces,  and  sixteen 
universities  were  represented  by  officially  appointed 
delegates. 

At  the  first  conference  in  1907  the  following  resolution 
had  been  adopted :  — 

WHEREAS,  the  principles  of  international  and  interstate 
comity  require  that  the  same  property  should  not  be  taxed 
by  two  jurisdictions  at  the  same  time,  and  the  laws  for  taxa- 
tion of  the  transfer  of  property  at  death  commonly  trans- 
gresses these  principles,  be  it 

Resolved,  that  succession  and  inheritance  tax  laws  should 
be  so  amended  that  the  same  property  shall  not  be  taxed  by 
two  jurisdictions  at  the  death  of  the  owner. 

At  the  second  conference  in  1908  a  committee  was  ap- 
pointed to  prepare  a  model  bill  which  would  accomplish 
this  result.  This  committee  included:  — 

Honorable  William  H.  Corbin,  State  Tax  Commis- 
sioner of  Connecticut. 

Professor  Charles  J.  Bullock,  Harvard  University. 

Honorable  Lawson  Purdy,  President  of  the  Depart- 
ment of  Taxes,  New  York  City. 

Mr.  A.  C.  Pleydell,  Secretary,  New  York  Tax  Reform 
Association. 


INHERITANCE  TAXES  101 

Mr.  E.  L.  Heydecker,  Assistant  Tax  Commissioner, 
New  York  City. 

Professor  Joseph  H.  Underwood,  University  of 
Montana. 

Professor  S.  S.  Huebner,  University  of  Pennsylvania. 

The  committee  aimed  to  produce  a  bill  imposing  a 
reasonable  tax  which  would  provide  a  fair  revenue  and 
also  a  tax  definitely  fixed  and  easily  computed.  The  tax 
proposed  is  graded  as  to  relationship  and  progressive  as 
to  the  amount  of  the  inheritance,  and  is  based  on  the 
value  of  each  inheritance,  not  on  the  total  value  of  the 
estate.  It  avoids  double  taxation  of  securities  by  pro- 
posing that  they  should  be  taxed  only  at  the  residence  of 
the  owner. 

"Tangible  property"  is  defined  to  mean  corporeal 
property,  such  as  real  estate  and  goods,  wares,  and  mer- 
chandise. "Intangible  property"  is  defined  to  mean 
incorporeal  property,  including  money,  deposits  in  bank, 
shares  of  stock,  bonds,  notes,  credits,  evidences  of  an 
interest  in  property,  and  evidences  of  debt. 

The  proposed  law  then  provides  that  a  resident  shall 
pay  an  inheritance  tax  on  all  his  intangible  property  and 
on  his  tangible  property  situated  within  the  State,  and 
that  a  non-resident  shall  pay  an  inheritance  tax  only  on 
tangible  property  within  the  State. 

The  classification  and  rates  proposed  are  as  follows:  — 

Direct  inheritances,  including  those  to  father, 
mother,  husband,  wife,  child,  brother,  sister, 
wife  or  widow  of  son,  husband  of  daughter, 
adopted  or  mutually  acknowledged  child,  lineal 
descendant  — 

Under  $2500  (to  each  heir) exempt 

Excess  over  $    2500  up  to  $  25,000 1% 

Excess  over    25,000  up  to    250,000 2% 


102  INHERITANCE  TAXES 

Excess  over  $    250,000  up  to  $1,000,000 3% 

Excess  over    1,000,000 4% 

Collateral    inheritances,    including    all   other    in- 
heritances — 

Under  $500  (to  each  heir) exempt 

Excess  over  $          500  up  to  $      10,000 2% 

Excess  over         10,000  up  to         25,000 8% 

Excess  over         25,000  up  to       100,000 5% 

Excess  over       100,000  up  to    1,000,000 10% 

Excess  over    1,000,000 15% 

The  conference  recommended  to  every  one  of  the 
States  the  adoption  of  such  a  bill.  Whatever  difference 
of  opinion  there  may  be  as  to  the  rates  suggested,  there 
certainly  can  be  no  sound  excuse  for  not  adopting  the 
provisions  that  eliminate  double  taxation. 

To  obtain  uniform  legislation,  concerted  action 
throughout  the  country  is  necessary,  as  it  was,  for  ex- 
ample, in  the  adoption  of  the  uniform  "  Negotiable  In- 
struments Act."  The  power  to  impose  an  inheritance 
tax  is  shared  by  the  States  and  the  Federal  Government 
independently  so  that  Federal  legislation  cannot  accom- 
plish uniformity. 

Incidentally,  the  Tax  Conference  has  taken  a  very 
decided  position  that  the  Federal  Government  should 
not  exercise  its  power  to  levy  an  inheritance  tax,  but 
should  leave  this  tax  to  the  States,  which  action  did  not 
avail,  however,  in  preventing  the  Federal  act  of  1916. 

The  opinion  of  the  Association  has  been  recently 
formulated  by  its  committee  as  follows: l  — 

First.  Inheritance  taxes  must  be  levied  by  a  given  State 
only  with  reference  to  such  property  as  devolves  in  accordance 
with  its  laws. 

1  Proceedings,  National  Tax  Association,  1914. 


INHERITANCE  TAXES  103 

Second.  Real  estate  and  tangibles  can  have  but  one  situs; 
namely,  the  place  or  places  of  location. 

Third.  Intangibles  as  such  have  no  taxable  situs,  but  should 
subject  their  owner  at  his  domicile  to  taxation  reasonably 
proportional  to  the  income  he  derives. 

The  proceedings  of  this  Association  have  already  had 
considerable  effect  in  stopping  the  riot  of  double  and 
triple  taxation.  Its  recommendations  have  been  already 
followed,  in  whole  or  in  part,  in  Connecticut,  New 
Hampshire,  Colorado,  Arkansas,  South  Dakota,  North 
Dakota,  and  New  York,  while  Massachusetts  and  Ver- 
mont have  gone  beyond  the  scheme  of  the  Association 
by  exempting  all  personalty  of  non-residents. 

The  latest  suggestion  toward  uniformity  in  inherit- 
ance taxation  is  that  made  recently  by  Professor  Selig- 
man,  and  discussed  in  Congress  during  the  debate  on  the 
Revenue  Law  of  1916,  that  all  inheritance  taxes  should 
be  collected  solely  by  the  National  Government  under 
a  Federal  law  and  that  the  proceeds  should  be  distrib- 
uted equitably  between  the  Federal  Government  and 
the  several  States.  This  large  increase  in  Federal  activi- 
ties would  certainly  eliminate  the  evils  of  double  taxa- 
tion, but  would  be  a  long  step  away  from  the  American 
ideal  of  local  self -sufficiency  and  toward  centralized  con- 
trol. It  may  well  be  that  we  are  now  so  commercially 
interdependent  that  our  forefathers'  notions  of  State  con- 
trol of  local  affairs,  especially  of  taxation,  are  no  longer 
apt  and  that  the  future  will  see  an  entire  readjustment 
of  inheritance  and  income  taxes. 


CHAPTER  X 

SOME  MATTERS  NOT  TOUCHED  UPON  — THE  POSITION 

OF    TRUST    CERTIFICATES  —  SOME    EFFORTS    TO 

AVOID  DOUBLE  TAXATION 

THE  purpose  of  the  foregoing  chapters  has  been  only 
to  indicate  to  investors  in  a  general  way  how  their  securi- 
ties may  be  affected  by  inheritance  tax  laws,  especially 
of  States  other  than  the  ones  in  which  they  reside.  For 
that  reason  many  matters  of  considerable  importance 
have  not  even  been  touched  upon. 

The  position  of  bequests  for  religious,  charitable,  or 
educational  purposes  has  not  been  gone  into.  Such  be- 
quests are  commonly  exempt  from  inheritance  tax, 
though  usually  the  bequest  is  exempt  only  if  the  money 
is  to  be  spent  in  the  State. 

No  attempt  has  been  made  to  deal  with  the  compli- 
cated details  involved  in  computing  the  inheritance  tax 
where  property  is  left  in  trust,  or  otherwise,  to  one  per- 
son for  life  and  then  passes  to  some  one  else. 

Nor  has  there  been  any  attempt  to  go  into  questions 
of  administrative  details,  such  as  who  determines  the 
tax,  who  collects  the  tax,  and  when  it  is  due.  There  is 
usually  some  advantage  in  prompt  payment  and  a  pen- 
alty in  the  way  of  excessive  interest  if  payment  is  de- 
layed beyond  a  certain  time. 

From  numerous  inquiries  that  we  have  received  it 
seems  that  there  is  some  confusion  as  to  the  basis  of  the 
computation  of  the  inheritance  tax  on  securities.  Many 


INHERITANCE  TAXES  105 

people  have  an  idea  that  the  tax  is  based  on  their  par 
value.  Such  is  not  the  case.  The  tax  on  all  property  is 
based  upon  its  real  or  market  value  at  the  time  of 
death.1 

There  is  much  uncertainty  as  to  the  status  of  trust  cer- 
tificates like  Great  Northern  Ore  certificates.  It  has 
been  noted  that  Massachusetts  treats  very  similar  or- 
ganizations, such  as  Massachusetts  Electric  and  Massa- 
chusetts Gas,  as  standing  on  the  same  footing  with 
Massachusetts  corporations,  although  they  are  not  in- 
corporated and  their  shares  represent  only  a  beneficial 
interest  in  property  held  by  trustees.  As  to  the  status 
of  Great  Northern  Ore  certificates  (it  will  be  remem- 
bered that  the  Great  Northern  Railway  is  a  Minnesota 
corporation),  we  are  advised  by  the  office  of  the  At- 
torney-General of  Minnesota,  under  date  of  February 
19,  1917,  that  they  have  been  taxing  such  certificates  in 
the  same  manner  as  shares  of  stock  during  the  past  year. 
There  is  a  case  pending  in  the  District  Court  of  Ramsey 
County  involving  the  validity  of  such  tax  which  will 
probably  be  tried  during  the  spring  of  1917. 

As  has  been  noted,  very  few  of  the  many  questions 
that  arise  have  been  settled  by  the  courts.  Where  a 
question  has  not  been  passed  upon  by  the  courts,  it  may 
be  safely  assumed  that  the  tax  authorities  will  construe 
it  in  such  a  way  as  to  get  a  tax  for  the  State  and  the  big- 
gest one  possible.  To  this  situation  is  due  much  of  the 
irritation  occasioned  by  the  operation  of  inheritance  tax 
laws.  Though  a  State  may  make  the  most  preposterous 
claims,  it  is  often  cheaper  to  pay  than  to  fight,  but  there 
is  gradually  accumulating  an  amount  of  righteous  indig- 
nation that  will  certainly  result  in  the  substitution  of  at 
1  Hooper  c.  Bradford,  178  Mass.  95. 


106  INHERITANCE  TAXES 

least  common  decency  for  highway  robbery  in  the  ad- 
ministration of  inheritance  tax  laws. 

There  have  been  some  interesting  efforts  to  meet  the 
injustice  of  these  laws.  An  expedient  that  is  finding  in- 
creasing favor  with  investors  is  to  keep  their  stock  certi- 
ficates of  foreign  corporations  in  the  name  of  their  banker 
or  broker.  This  seems  not  only  an  effective,  but  a  square 
and  legitimate  method  of  preventing  the  outrage  of 
double  taxation.  The  only  possible  pretext  that  a  State 
has  for  levying  an  inheritance  tax  on  stock  of  a  do- 
mestic corporation,  owned  by  a  non-resident,  is  that 
ordinarily  it  is  necessary  to  resort  to  the  protection  of 
the  laws  of  the  State  to  transfer  the  securities,  but  if 
securities  are  held  in  such  a  way  that  it  is  not  necessary 
to  transfer  them  in  settling  an  estate,  the  State  of  in- 
corporation certainly  has  no  moral  or  legal  right  to  a 
transfer  tax. 

Another  device  which  has  been  sometimes  upheld  is 
to  make  deposits  or  keep  stock  in  the  name  of  two  indi- 
viduals, as  the  husband  and  wife,  and  the  survivor. 
Such  transfers  have,  however,  been  directly  taxed  by 
statute  in  Massachusetts  and  New  York  and  have  been 
found  taxable  in  some  other  States. 

The  creation  of  a  trust  does  not  seem  an  effective 
means  for  avoiding  inheritance  taxes,  as  the  imposition 
of  an  inheritance  tax  by  the  State  of  the  domicile  on  a 
trust  fund  kept  in  another  State  over  which  fund  the 
decedent  reserves  complete  control  is  upheld  in  a  recent 
decision  by  our  highest  court.1 

A  simple  method  of  avoiding  the  payment  of  a  collat- 
eral inheritance  tax,  in  a  State  which  does  not  tax  direct 
inheritances,  is  found  in  an  Iowa  case  in  which  the  col- 
1  Bullen  9.  Wisconsin,  36  U.S.  Sup.  Ct.  Rep.  473. 


INHERITANCE  TAXES  107 

lateral  legatees,  and  others  interested  in  the  will,  all 
united  in  renouncing  the  provisions  of  the  will  and  agree- 
ing that  the  property  might  be  distributed  as  in  the  case 
of  intestacy.  The  court  upheld  their  right  to  do  this, 
with  the  result  that  the  property  passed  entirely  to 
direct  heirs  and  the  State  got  no  tax.  Though  it  was 
fairly  evident  that  there  was  some  sort  of  an  under- 
standing that  the  collateral  legatees  should  not  suffer  by 
their  renunciation,  the  effect  of  such  an  understanding 
was  not  passed  upon  by  the  court.1 

Other  people  have  tried  incorporating  themselves  into 
a  holding  company.  To  a  man  holding  securities  in  cor- 
porations of  numerous  States,  this  plan  has  much  to 
commend  it.  On  his  death  his  estate  consists  simply  of 
the  shares  of  the  holding  company  in  whose  treasury  are 
held  his  other  securities.  In  a  Minnesota  case  a  man 
incorporated  himself,  turned  over  all  his  property  to  the 
corporation,  issued  the  stock  to  his  family  in  the  propor- 
tions in  which  he  wished  them  to  share  his  property  on 
his  death,  and  then  had  the  property  leased  by  the  cor- 
poration back  to  him  for  his  life.  This  family  did  not 
pay  any  inheritance  tax.2 

Such  devices  are,  however,  not  common,  and  only 
worth  while  for  large  estates.  For  the  estate  of  ordinary 
size  inheritance  taxation  is  frequently  not  taxation,  but 
legalized  or  "officialized"  robbery. 

We  have  spoken  of  double  and  triple  taxation.  If  a 
man  lives  in  one  State  and  has  stock  in  a  corporation 
organized  in  another  State,  which  does  all  its  business  in 
a  third  State,  and  keeps  his  stock  in  a  safe-deposit  box 
in  a  fourth  State,  his  estate  may  be  obliged  to  pay  a  full 

1  In  re  Stone,  132  Iowa,  136. 

1  State  P.  Probate  Court,  102  Minn.  268. 


108  INHERITANCE  TAXES 

inheritance  tax  four  times.  The  first  State  may  be  any 
one  of  forty-three;  the  second  State,  any  one  of  at  least 
twenty-eight;  the  third,  any  one  of  thirteen;  l  and  the 
fourth,  any  one  of  hah*  a  dozen. 

1  Such  tax  is,  however,  illegal.  See  ante,  p.  12. 


CHAPTER  XI 

CANADA 

CORPORATIONS  may  be  organized  either  under  the 
laws  of  the  Dominion  or  under  the  laws  of  the  different 
Provinces.  The  Provinces  have  the  power  to  incorporate 
companies,  and  these  companies  have  power  to  do  busi- 
ness anywhere  they  wish.  Apparently  there  is  no  differ- 
ence, so  far  as  succession  duties  go,  whether  the  com- 
panies are  incorporated  under  the  laws  of  a  Province  or 
under  the  laws  of  the  Dominion. 

The  Dominion  Government  collects  no  tax,  but  the 
Provinces  do.  The  local  law  does  not  allow  transfers  of 
stock  without  the  payment  of  succession  duties  to  the 
Province  in  which  the  registry  office  of  the  company  is 
located.  The  fact  that  the  companies  are  incorporated 
by  the  Dominion  Government  apparently  makes  no 
difference.  This  might  raise  an  important  constitutional 
question  as  to  whether  or  not  the  Provinces  have  power 
to  tax  such  transfers,  but  the  courts  have  held  that  the 
Provinces  have  the  power  to  impose  a  license  fee  on  a 
company  incorporated  by  the  Dominion  doing  business 
within  the  separate  Provinces,  so,  on  the  same  principle, 
it  would  seem  that  the  taxation  would  be  held  constitu- 
tional. 

An  American  estate  owning  stock  of  Canadian  Pacific, 
which  is  incorporated  by  the  Dominion  Government, 
would  have  to  pay  succession  duties  to  the  Province  of 
Quebec,  where  there  is  a  registry  office;  that  is,  if  the 
stock  was  on  the  Quebec  registry.  Canadian  Pacific  also 


110  INHERITANCE  TAXES 

has  a  registry  in  London,  and  if  the  stock  was  on  the 
London  registry,  this,  of  course,  would  not  apply. 

A  resident  of  Montreal  who  owns  shares  or  bonds  of  an 
American  railroad  would  pay  an  inheritance  tax  to  the 
Province  of  Quebec  in  addition  to  what  he  might  have 
to  pay  in  the  States. 

Two  important  cases  respecting  Canadian  inheritance 
taxes  have  recently  been  decided  by  the  English  Privy 
Council.  In  the  first,1  the  estate  of  a  resident  of  Nova 
Scotia  was  held  liable  to  a  succession  tax  in  New  Bruns- 
wick on  a  deposit  in  the  New  Brunswick  branch  of  the 
Bank  of  British  North  America.  The  court  holds  this 
deposit  to  be  a  simple  contract  debt  taxable  at  the  resi- 
dence of  the  debtor.  This  decision  would  seem  to  lend 
countenance  to  the  double  taxation  of  bonds  in  this 
country. 

Another  and  even  more  important  case,2  recently  de- 
cided by  the  same  learned  tribunal,  holds  that  the  Que- 
bec statute  does  not  apply  to  movable  property  outside 
the  Province.  The  Privy  Council  goes  on  to  hold  that, 
as  under  the  British  North  America  Act  of  1867  the 
Canadian  Provinces  have  authority  to  levy  only  direct 
taxes,  the  Quebec  inheritance  tax  law  is  not  a  direct  tax 
and  is  consequently  void,  at  least  so  far  as  it  applies  to 
property  outside  the  Province.  The  decision  is  of  funda- 
mental importance  and  should  be  carefully  studied,  as  it 
almost  seems  to  lay  the  axe  at  the  whole  inheritance  tax 
system  of  Canada.8 

1  Rex  0.  Lovitt,  1912,  A.C.  212.     •  Cotton  v.  Rex,  1914,  A.C.  176. 
1  The  principal  other  Canadian  cases  are  as  follows:  — 

Attorney-General  c.  Newman,  1  O.L.R.  (Ont.)  51. 

In  re  McDonald,  9  B.C.R.  174. 

Lam  be  v.  Manuel,  1903,  App.  Cas.  68. 

Woodworth  v.  Attorney-General,  1908,  App.  Cas.  508. 


INHERITANCE  TAXES 


111 


According  to  our  ideas  an  inheritance  tax  is  an  excise  * 
and  it  is  almost  impossible  to  conceive  of  it  as  a  direct 
tax,  but  the  new  Quebec  act  of  1914  has  been  sustained 
as  being  a  direct  tax.2 

Features  of  the  Canadian  laws  are  their  discrimination 
against  aliens  and  the  fact  that  they  are  drawn  to  cover 
bonds  as  well  as  stocks  issued  by  Canadian  corporations 
held  by  aliens.  Quebec,  for  example,  is  exacting  a  high 
rate  on  the  transfer  of  registered  bonds  of  aliens  issued 
by  Quebec  corporations.  Canadian  securities  are  cer- 
tainly not  attractive  to  American  investors  from  the 
standpoint  of  inheritance  taxes. 

An  outstanding  feature  of  the  Canadian  acts  is  their 
complicated  system  of  exemptions  based  chiefly  on  the 
value  of  the  whole  estate,  and  in  some  cases  both  on  the 
value  of  the  whole  estate  and  on  the  size  of  the  individ- 
ual share.  We  have  outlined  the  situation  as  best  we 
can  in  the  following  table :  — 


Province 

Direct  inheritances 

Collateral  inheritances 

Rate 
(per  cent) 

Exemption 

Rate 
(per  cent) 

Exemption 

Alberta           

U 

I 

I 

I 

1 

t-14c 

1-5 
t-9 
t-5* 
t-5 
t-15 
-2i 

r5 

$20006-$25,000o 
25,000  a 
2000  b-  25,000  a 
200  6-  50,000  a 
500  6-  25,000  o 
3006-  25,000a 
10,000o 
15,000  o 
50006-  25,0000 

5-16  c 
5-10 
1-15 
5-10* 
5-10 
6-17i 

JHf 

5-15 
6-10 

$5000a 
5000o 
4000o 
$2006-  SOOOo 
5006-  50000 
3006-  50000 
SOOOa 

2006-50oba 

British  Columbia  

New  Brunswick  

Prince  Edward  Island 

*  To  persons  residing  out  of  Province  rate  is  doubled. 

a  Exemption  figured  on  value  of  whole  estate.       6  Exemption  of  individual  share. 

c  Rate  is  slightly  higher  where  beneficiaries  are  non-residents. 

1  Cf.  Welch  v.  Burrill,  223  Mass.  87,  96. 

2  Desjardins  ».  Reid,  (1914)  21  R.  de  J.  145.    The  validity  and 
effect  of  the  Quebec  act  is  still,  in  May,  1917,  the  subject  of  litiga- 
tion, and  we  therefore  suggest  the  payment  of  the  tax  only  after 
proper  protest.  (Ed.) 


LIST  OF  CORPORATIONS 

THE  following  is  a  list  of  some  of  the  more  prominent  com- 
panies, showing  the  State  in  which  they  are  incorporated,  and 
the  exchange  where  their  securities  are  traded  in.  Those 
marked  *  are  not  corporations,  but  joint-stock  companies  or 
voluntary  associations. 

State  where 

Name  of  company  Stock  Exchange  incorporated 

or  organized 

Acme  Tea  Company New  York,  Philadelphia  Pennsylvania 

Acushuet  Mills Massachusetts 

Adams  Express New  York New  York* 

Adventure  Copper Boston Michigan 

JEtna.  Explosives N.Y.  Curb,  Boston  Curb New  York 

Ahmeek  Mining Boston Michigan 

Ajax  Rubber New  York New  York 

Alaska  Gold New  York,  Boston Maine 

Alaska-Juneau  Gold New  York West  Virginia 

Algomah  Mining Boston Michigan 

Allis-Chalmers New  York  Delaware 

Allouez  Mining Boston Michigan 

American  Agricultural  Chemical New  York,  Boston Connecticut 

American  Bank  Note New  York New  York 

American  Beet  Sugar New  York New  Jersey 

American  Book New  York 

American  Brake  Shoe  and  Foundry New  York New  Jersey 

American  Brass Connecticut 

American  and  British  Manufacturing. .  .New  York  Curb New  York 

American  Can New  York,  Chicago New  Jersey 

American  Car  and  Foundry New  York  New  Jersey 

American  Chicle New  Jersey 

American  Cities New  York,  New  Orleans New  Jersey 

American  Cotton  Oil New  York New  Jersey 

American  Express New  York New  York* 

American  Glue Massachusetts 

American  Hide  and  Leather New  York New  Jersey 

American  Ice  Securities New  York New  Jersey 

American  Light  and  Traction New  York New  Jersey 

American  Linen Massachusetts 

American  Linseed New  York New  Jersey 

American  Locomotive New  York New  York 

American  Malt  New  York New  Jersey 

American  Manufacturing Massachusetts 

American  Piano Boston New  Jersey 

American  Pneumatic  Service Boston Delaware 

American  Power  and  Light Maine 

American  Radiator Chicago New  Jersey 

American  Railways Philadelphia New  Jersey 

American  Screw Rhode  Island 

American  Sewer  Pipe Pittsburgh,  Cleveland New  Jersey 

American  Shipbuilding Chicago New  Jersey 

American  Smelters  Securities New  York,  Boston New  Jersey 

American  Smelting  and  Refining New  York New  Jersey 


114  LIST  OF  CORPORATIONS 


Name  of  company  Stock  Exchange 

American  Snuff  ........................  New  York  .....................  New  Jersey 

American  Soda  Fountain  ......   .......................................  New  Jersey 

American  Steel  Foundries.  .............  New  York  .....................  New  Jersey 

American  Sugar  .......................  New  York,  Boston  .............  New  Jersey 

American  Sumatra  Tobacco  ............  New  York  Curb  ...................  Georgia 

American  Telegraph  and  Cable  .........  New  York  ......................  New  York 

American  Telephone  and  Telegraph  ----  New  York,  Boston,  Chicago, 

Philadelphia,  Washington,  D.C...New  York 
American  Thread  ....................................................  New  Jersey 

American  Tobacco  .....................  New  York  .....................  New  Jersey 

American  Typefounders  ................  Chicago  .............  .  .........  New  Jersey 

American  Woolen  .....................  New  York,  Boston  ..........  Massachusetts 

American  Writing  Paper  ...............  New  York,  New  York  Curb  .....  New  Jersey 

American  Zinc  ........................  New  York,  Boston  ..................  Maine 

Ames  Shovel  and  Tool  ................................................  New  Jersey 

Amoskeag  Manufacturing  ..............  Boston  ....................  New  Hampshire 

Anaconda  Copper  .....................  New  York,  Boston  ........  ........  Montana 

Androscoggin  Mills  .....................................................     Maine 

Anglo-American  Oil  ...................  New  York  Curb  ..................  England 

Ann  Arbor  Railroad  ...................  New  York  ........................  Michigan 

Arizona  Commercial  Mining  ............  Boston  .............................  Maine 

Arkansas  Southwestern  .................................................  Arkansas 

Arkwright  Mills  ...................................................  Massachusetts 

Arlington  Mills  ...................................................  Massachusetts 

Armour  and  Company  ....................................................  IllinoU 

Arnold  Mining  ........................  Boston  ...........................  Michigan 

Associated  Dry  Goods  ..................  New  York  ........................  Virginia 

Associated  Oil  .........................  Los  Angeles  .....................  California 

Atchison,  Topeka  &  Santa  Fe  ..........  New  York,  Boston  .................  Kansas 

Atlanta,  Birmingham  &  Atlantic  .......  New  York  ........................  Georgia 

Atlantic  Coast  Line  ....................  New  York,  Baltimore,  Philadelphia.  Virginia 

Atlantic,  Gulf  &  West  Indies.  ..........  New  York,  Boston  ..................  Maine 

Atlantic  Mills  ......................................................  Rhode  Island 

Atlantic  Mining  ........................................................  Michigan 

Atlantic  Refining  ......................  New  York  Curb  ..............  Pennsylvania 

Atlas  Portland  Cement  ............................................  Pennsylvania 

Atlas  Powder  ..........................................................  Delaware 

Automatic  Weighing  Machine.  .........................................  New  York 

Autosales  Gum  and  Chocolate  .....  ,  ....................................  New  York 

Babcock  and  Wilcoz  Company  ........................................  New  Jersey 

Baker  (Walter)  Company  ..........................................  Massachusetts 

Baldwin  Locomotive  Works  ............  New  York,  Philadelphia  ......  Pennsylvania 

Baltimore  &  Ohio  .....................  New  York,  Baltimore  .  .  .  Maryland,  Virginia 

Bangor  &  Aroostook  ......................................................  Maine 

Barnaby  Manufacturing  ..........................................  Massachusetts 

Barnard  Manufacturing  ............................................  Massachusetts 

Barrett  Company  of  New  Jersey  ........  New  York  .....................  New  Jersey 

Bates  Manufacturing  ......................................................  Maine 

Batopilas  Mining  ......................  New  York,  Boston  ...............  New  York 

Bay  State  Street  Railway  ..............  Boston  ......................  Massachusetts 

Berkshire  Cotton  Manufacturing  ...................................  Massachusetts 

Bethlehem  Steel  ......................  New  York  .....................  New  Jersey 

Bigelow  Carpet  ...................................................  Massachusetts 

Bingham  Mines.  .......................  Boston  Curb  ........................  Maine 

Birmingham  Railway,  Light  and  Power.  .New  Orleans,  Louisville  ...........  Alabama 

Bliss  (E.  W.)  Company  ............................................  West  Virginia 

Booth  Fisheries.  .......................  New  York,  Chicago  ..............  Delaware 

Boott  Mills  .......................................................  Massachusetts 

Borden's  Condensed  Milk  .............................................  New  Jersey 

Borden  Manufacturing.  ............................................  Massachusetts 

Borne-Scrymser  .......................  New  York  Curb  ...............  New  Jersey 

Boston  &  Albany  .................  .....Boston  ..........  Massachusetts,  New  York 


LIST  OF  CORPORATIONS  115 

Stale  where 

Name  of  company  Stock  Exchange  incorporated 

or  organized 

Boston  &  Lowell Boston Massachusetts 

Boston  &  Maine Boston Mass.,N.H.,  Me. 

Boston  and  Montana  Development New  York  Curb,  Boston  Curb Montana 

Boston  &  Providence Boston,  Providence Massachusetts 

Boston  &  Worcester Boston Massachusetts 

Boston  Belting Massachusetts 

Boston  Duck. . .   Massachusetts 

Boston  Elevated Boston Massachusetts 

Boston  Land Boston Massachusetts* 

Boston,  Revere  Beach  &  Lynn Boston Massachusetts 

Boston  Suburban  Electric Boston Massachusetts* 

Boston  Wharf Massachusetts 

Boston  Woven  Hose Massachusetts 

Braden  Copper  Mines New  York  Curb Delaware 

Brill  (J.  O.)  Company Philadelphia Pennsylvania 

Brooklyn  Rapid  Transit New  York New  York 

Brooklyn  Union  Gas New  York New  York 

Brown  Shoe New  York ....  : New  York 

Buckeye  Pipe  Line New  York  Curb Ohio 

Buffalo,  Rochester  &  Pittsburgh New  York New  York,  Pennsylvania 

Burns  Bros.  Inc New  York New  Jersey 

Bush  Terminal New  York New  York 

Butler  Mill Massachusetts 

Butte-Balaklava Boston Arizona 

Butte  &  Superior New  York,  Boston  Arizona 

Butterick  Company New  York New  York 

California  Petroleum New  York Virginia 

Calumet  and  Arizona  Mining Boston Arizona 

Calumet  and  Hecla Boston Michigan 

Cambria  Steel Philadelphia Pennsylvania 

Canadian  Car  and  Foundry New  York  Curb.  Montreal, 

Toronto Dominion  of  Canada 

Canadian  Pacific New  York,  Montreal, 

Toronto Dominion  of  Canada 

Canadian  Southern New  York Dominion  of  Canada 

Capital  Traction Washington District  of  Columbia 

Car  Light  and  Power New  York  Curb Maine 

Case  (J.  I. )  Company New  York Wisconsin 

Centennial  Copper Boston Michigan 

Central  Coal  and  Coke New  York,  Philadelphia,  St.  Louis. Missouri 

Central  Foundry New  York  Curb Maine 

Central  of  Georgia  Railway New  York Georgia 

Central  Leather New  York,  Boston New  Jersey 

Central  Pacific Utah 

Central  Railroad  of  New  Jersey New  York,  Philadelphia New  Jersey 

Central  Vermont  Railway Boston Vermont 

Central  &  South  American  Telegraph.  .  New  York New  York 

Cerro  de  Pasco  Copper New  York New  York 

Chalmers  Motor Detroit Michigan 

Chandler  Motor  Car New  York Ohio 

Chapman  Valve Massachusetts 

Chesapeake  &  Ohio New  York Virginia,  West  Virginia 

Chesebrough  Manufacturing New  York  Curb New  York 

Chevrolet  Motor New  York  Curb Delaware 

Chicago  &  Alton New  York Illinois 

Chicago  &  Eastern  Illinois New  York Illinois 

Chicago  &  Northwestern New  York Illinois,  Wisconsin,  Michigan 

Chicago,  Burlington  &  Quincy New  York,  Chicago,  Boston Illinois 

Chicago  Elevated  Railways Massachusetts 

Chicago  Great  Western New  York Illinois 

Chicago  Junction  Railways  and  Union 
Stock  Yards Boston New  Jersey 


116  LIST  OF  CORPORATIONS 

State  where 

Name  of  company  Stock  Exchange  incorporated 

or  organited 

Chicago,  Milwaukee  &  St.  Paul New  Tork Wisconsin 

Chicago  Pneumatic  Tool Chicago New  Jersey 

Chicago  Railways Chicago Illinois 

Chicago,  Rock  Island  &  Pacific  Ry New  York Illinois,  low* 

Chicago,  St.  Paul,  Minneapolis  &  Omaha  New  fork Wisconsin 

Chicago  Telephone Chicago Illinois 

Chicago  Utilities Maine 

Chicopee  Manufacturing Massachusetts 

Childs  Company New  Tork 

Chile  Copper New  York,  Boston Delaware 

Chiuo  Copper New  Tork,  Boston Maine 

Cincinnati,  Hamilton  &  Dayton Ohio 

Cleveland,  Cincinnati,  Chicago  &  St. 

Louis New  Tork Ohio,  Indiana 

Cluett,  Peabody New  Tork New  Tork 

Colonial  Oil New  Tork  Curb New  Jersey 

Colorado  Fuel  and  Iron New  Tork Colorado 

Colorado  &  Southern New  Tork Colorado 

Columbia  Gas  and  Electric New  Tork,  Pittsburgh West  Virginia 

Commonwealth-Edison Chicago Illinois 

Computing  — Tabulating  —  Recording .. New  Tork New  Tork 

Concord  &  Claremont  (B.  &  M.) New  Hampshire 

Concord  &  Montreal  (B.  &  M. ) Boston New  Hampshire 

Concord  &  Portsmouth  (B.  &  M.) New  Hampshire 

Connecticut  &  Passaic  River  (B.  &  M. ) .  Boston Vermont 

Connecticut  Company Connecticut 

Connecticut  Railway  and  Light New  Tork Connecticut 

Connecticut  River  Railroad  (B.  &  M.) . . Boston Massachusetts,  New  Hampshire 

Consolidated  Gas New  Tork New  Tork 

Consolidated  Gas,  Electric  Light  and 

Power Baltimore Maryland 

Consolidated  Interstate-Callahan 

Mining New  Tork Arizona 

Consolidated  Mercur . Boston,  Salt  Lake New  Jersey 

Consolidation  Coal New  Tork,  Baltimore,  St.  Louis..  Mary  land 

Contact  Copper Boston  Curb Michigan 

Continental  Can New  Tork New  Tork 

Continental  Mills Boston Maine 

Continental  Oil New  Tork  Curb Colorado 

Copper  Range Boston Michigan 

Corn  Products New  Tork,  Chicago New  Jersey 

Cosden  Oil  and  Gas New  Tork  Curb  Oklahoma 

Cramp  &  Sons  ( Wm.) Philadelphia Pennsylvania 

Crescent  Pipe  Line New  Tork  Curb Pennsylvania 

Crez  Carpet New  Tork Delaware 

Crucible  Steel New  Tork,  Pittsburgh New  Jersey 

Cuba  Cane  Sugar New  Tork New  Tork 

Cuban- American  Sugar New  Tork New  Jersey 

Cuban  Portland  Cement Boston Massachusetts 

Cudahy  Packing Chicago Maine 

Cumberland  Power  and  Light Boston Maiue 

Cumberland  Pipe  Line New  Tork  Curb Kentucky 

Cumberland  County  Power  and  Light. . .  Boston Maine 

Cumberland  Telephone  and  Telegraph . . New  Tork,  Boston Kentucky 

Daly-West Boston,  Salt  Lake  City Colorado 

Dartmouth  Manufacturing Massachusetts 

Davis-Daly  Copper Boston Maine 

Davis  Mills Massachusetts 

Dayton  Power  and  Light New  Tork Ohio 

Deere  and  Company New  Tork,  Chicago Illinois 

Delaware  &  Hudson New  Tork New  Tork 

Delaware,  Lackawauna  &  Western New  Tork Pennsylvania 


LIST  OF  CORPORATIONS  117 

Slate  where 

Name  of  company  Stock  Exchange  incorporated 

or  organized 

Denver  &  Rio  Grande New  York Colorado,  Utah 

Des  Moines  &  Ft.  Dodge  Railway New  York Iowa 

Detroit-Edison New  York New  York 

Detroit  United New  York,  Cincinnati,  Cleveland  .Mich igan 

Diamond  Match New  York,  Chicago Illinois 

Distillers  Securities New  York New  Jersey 

Dome  Mines New  York Ontario 

Dominion  Coal Boston Nova  Scotia 

Dominion  Steel Boston,  Montreal,  Toronto Nova  Scotia 

Douglas  (W.  L.)  Shoe Maine 

Draper  Company Maine 

Driggs-Seabury  Ordnance New  York Delaware 

Duluth,  South  Shore  &  Atlantic New  York,  Toronto,  Montreal.. Mich.,  Wia. 

Duluth-Superior  Traction New  York Connecticut 

Du  Pont  Powder New  York,  San  Francisco New  Jersey 

D wight  Manufacturing Massachusetts 

East  Boston  Land Boston Massachusetts 

East  Butte Boston Arizona 

Eastern  Steamship Maine 

Eastman  Kodak New  York,  Rochester New  Jersey 

Edison  Company  of  Boston Boston Massachusetts 

Edmunds  and  Jones  Corporation Chicago New  York 

Edwards  Manufacturing Maine 

Electric  Bond  and  Share New  Orleans New  York 

Electric  Storage  Battery New  York,  Philadelphia New  Jersey 

Elgin  Watch Chicago Illinois 

Emerson  Phonograph New  York  Curb New  York 

Erie  Railroad New  York New  York 

Essex  Company Massachusetts 

Eureka  Pipe  Line New  York  Curb West  Virginia 

Everett  Mills Massachusetts 

Fairbanks  and  Company Vermont 

Federal  Mining  and  Smelting New  York Delaware 

Fisher  Manufacturing Massachusetts 

Fisk  Rubber Massachusetts 

Fitchburgh  Railroad Boston Mass.,N.H.,Vt.,N.Y. 

Flint  Mills Massachusetts 

Fore  River  Shipbuilding Massachusetts 

Franklin  &  Tilton  (B.  M.) New  Hampshire 

Franklin  Company Maine 

Franklin  Mining Boston Michigan 

Galena  Signal  Oil New  York  Curb Pennsylvania 

Galveston- Houston  Electric Boston,  Louisville Maine 

Gaston,  Williams  &  Wigmore New  York New  York 

General  Asphalt Philadelphia New  Jersey 

General  Chemical New  York New  York 

General  Electric New  York,  Boston New  York 

General  Motors New  York,  Chicago,  Cleveland.. ..Delaware 

Georgia  Railway  &  Electric Boston,  Louisville Georgia 

Giant  Portland  Cement Delaware 

Gillette  Safety  Razor Massachusetts 

Gironx  Consolidated Boston Delaware 

Goldfield  Consolidated New  York,  Los  Angeles Wyoming 

Goodrich  (B.  F.)  Company New  York New  York 

Gorham  Manufacturing Providence Rhode  Island 

Gosnold  Mills Massachusetts 

Granby  Consolidated New  York,  Boston British  Columbia 

Granite  Mills Massachusetts 

Great  Falls  Manufacturing New  Hampshire,  Maine 

Great  Northern New  York Minnesota 


118  LIST  OF  CORPORATIONS 

Slate  when 

Name  of  company  Stock  Exchange  incorporated 

or  organized 

Great  Northern  Ore New  York Minnesota* 

Greene-Cananea New  York,  Boston Minnesota 

Grinnell  Manufacturing Massachusetts 

Guggenheim  Exploration New  York New  Jersey 

Gulf  States  Steel New  York  Delaware 

Hackensack  Water New  York Massachusetts 

Hamilton  Manufacturing Massachusetts 

Hancock  Consolidated Boston Michigan 

Harbison-Walker New  York,  Pittsburgh Pennsylvania 

Hargravea  Mills Massachusetts 

Harmony  Mills. Massachusetts 

Hartman  Corporation New  York,  Chicago Virginia 

Hart,  Schaffner  &  Man Chicago New  York 

Havana  Electric  Railway,  Light  and 

Power New  York New  Jersey 

Hed ley  Gold  Mining Boston Delaware 

Helme  (Geo.  W.)  Company New  York New  Jersey 

Helvetia  Mining Boston Arizona 

Hey  wood  Bros.  &  Wakefleld New  Jersey 

Hill  Manufacturing Maine 

Hocking  Valley  Products West  Virginia 

Hocking  Valley  Railroad New  York Ohio 

Homestake  Mining New  York California 

Hood  Rubber Massachusetts 

Hudson  Companies New  York 

Illinois  Brick Chicago Illinois 

Illinois  Central New  York Illinois 

Illinois  Pipe  Line New  York  Curb Ohio 

Illinois  Traction Montreal,  Toronto Maine 

Independent  Brewing Pittsburgh Pennsylvania 

Indiana  Mining New  York,  Lafayette Indiana 

Indiana  Mining Michigan 

Indiana  Pipe New  York  Curb Indiana 

Ingersoll-Rand New  York New  Jersey 

Inspiration  Consolidated New  York,  Boston Maine 

Interboro  Rapid  Transit New  York New  York 

Interborough  Consolidated. New  York ...    New  York 

Inter  Continental  Rubber New  York  Curb New  Jersey 

International  Agricultural New  York New  York 

International  &  Great  Northern Tex  as 

International  Buttonhole Boston Maine 

International  Cotton  Mills Massachusetts 

International  Harvester  (N.J.) New  York New  Jersey 

International  Harvester  Corporation — New  York New  Jersey 

International  Mercantile  Marine New  York New  Jersey 

International  Nickel New  York New  Jersey 

International  Paper New  York New  York 

International  Portland  Cement Boston Virginia 

International  Power New  York New  Jersey 

International  Silver Hartford New  Jersey 

International  Smelting  and  Refining. . . .  Boston New  Jersey 

International  Steam  Pump New  York,  Boston New  Jersey 

International  Traction New  Jersey 

Island  Creek  Coal Boston Maine 

Isle  Royale  Copper Boston New  Jersey 

Jacksonville  Traction Massachusetts 

Jewell  Tea New  York New  York 

Jones  &  Laughlin  Steel Pennsylvania 

Kanawaha  &  Michigan New  York Ohio,  West  Virginia 


LIST  OF  CORPORATIONS  119 

State  where 

Name  of  company  Stock  Exchange  incorporated 

or  organized 

Kansas  City,  Ft.  Scott  &  Memphis New  York,  Boston Kansai 

Kansas  City,  Mexico  &  Orient KansM 

Kansas  City  Railway  and  Light Chicago  New  Jersey 

Kansas  City  Southern New  York Missouri 

Kayser  (Julius)  Company New  York New  York 

Kelly-Springfield  Tire New  York New  Jersey 

Kenuecott  Copper New  York New  York 

Kerr  Lake Boston,  Toronto New  York 

Keweenaw  Copper Boston,  Duluth Michigan 

Kings  County  Electric  Light  and  Power.  New  York New  York 

Kresge  (S.  S.)  Company New  York Delaware 

La  Belle  Iron  Works Pittsburgh West  Virginia 

Lackawanna  Steel New  York New  York 

Laclede  Gas New  York,  St.  Louis Missouri 

Lake  Copper Boston Michigan 

Lake  Erie  &  Western New  York Illinois 

Lake  Superior  Corporation Philadelphia,  Toronto New  Jersey 

Lake  Torpedo  Boat New  York  Curb Maine 

Lancaster  Mills Massachusetts 

Lanett  Cotton  Mills Alabama 

La  Salle  Copper Boston Michigan 

Laurel  Lake  Mills..... Massachusetts 

Lauriuui  Mining Michigan 

Lawrence  Manufacturing Massachusetts 

Lee  Rubber  and  Tire New  York New  York 

Lehigh  Coal  &  Navigation. Philadelphia Pennsylvania 

Lehigh  Valley  Coal  Sales New  York  Curb New  Jersey 

Lehigh  Valley  Railroad New  York,  Philadelphia Pennsylvania 

Liggett  &  Meyers New  York New  Jersey 

Lima  Locomotive New  York  Curb Virginia 

Lincoln  Telephone  and  Telegraph Nebraska 

Long  Island  Railroad New  York New  York 

Loose-Wiles  Biscuit New  York New  York 

Lorillard  (P.)  Company New  York New  Jersey 

Lorraine  Manufacturing Rhode  Island 

Louisiana  &  Arkansas Arkansas 

Louisville  &  Nashville New  York Kentucky 

Lowell  Bleachery Massachusetts 

Luther  Manufacturing Massachusetts 

Ly man  Mills Massachusetts 

McElwain  (W.  H.)  Company Boston Massachusetts 

Mackay  Companies New  York,  Boston Massachusetts* 

Magma  Copper New  York  Curb Maine 

Maine  Central  Railroad Boston Maine 

Manchester  &  Keene  (B.  &M.)... New  Hampshire 

Manchester  &  Lawrence  (B.  &  M.) Boston New  Hampshire 

Manhattan  Beach New  York New  York 

Manhattan  Elevated New  York New  York 

Manhattan  Shirt New  York New  York 

Manomet  Mills Massachusetts 

Manufacturers'  Light  and  Heat Pittsburgh Pennsylvania 

Marconi  Wireless  of  America New  York  Curb New  Jersey 

Massachusetts  Consolidated Boston Michigan 

Massachusetts  Cotton  Mills Massachusetts 

Massachusetts  Electric Boston Massachusetts* 

Massachusetts  Gas Boston Massachusetts* 

Massachusetts  Mills  in  Georgia Massachusetts 

Mathieson  Alkali  Works New  York,  Boston Virginia 

Maverick  Mills Massachusetts 

Maxwell  Motor New  York Delaware 

May  Department  Stores New  York New  York 


120  LIST  OF  CORPORATIONS 

Staff,  where 

Name  of  company  Stock  Excfuwgt  incorporated 

or  organized 

Mayflower  Mining Boston Michigan 

Mergenthaler  Linotype New  York,  Boston,  Washington,  D.C . .  N.Y. 

Metropolitan  West  Side  Railway New  York,  Chicago Illinois 

Mexican  Light  and  Power Montreal ,  Toronto Dominion  of  Canada 

Mexican  Metals Boston  Curb Arizona 

Mexican  Petroleum New  York Delaware 

Mexican  Telephone  and  Telegraph Boston Maine 

Miami  Copper New  York,  Boston Delaware 

Michigan  Central New  York Michigan 

Michigan  State  Telephone Chicago Michigan 

Middlesex  Company Massachusetts 

M  id  vale  Steel New  York  Curb Delaware 

Minneapolis  &  St.  Louis New  York Minnesota,  Iowa 

Minneapolis  General  Electric New  Jersey 

Minneapolis,  St.  Paul  &  Saulte  Sainte 

Marie New  York Minn.,  Wis.,  Mich. 

Mississippi  River  Power Boston Maine 

Missouri,  Kansas  &  Texas New  York Kansas 

Missouri  Pacific New  York Missouri,  Kansas,  Nebraska 

Mitchell  Motors New  York  Curb New  York 

Mobile  Electric Alabama 

Mohawk  Mining Boston Michigan 

Moline  Plow New  York Illinois 

Montana  Power New  York New  Jersey 

Montgomery,  Ward New  York New  York 

Montreal  Light,  Heat  and  Power Montreal,  Toronto Quebec 

Montreal  Tramways Montreal Quebec 

Mother  Lode New  York  Curb Washington 

Narraganaett  Mills Massachusetts 

Nashawena  Mills Massachusetts 

Nashua  &  Acton  (B.  &  M.) Massachusetts,  New  Hampshire 

Nashua  &  Lowell  (B.  &  M.) Massachusetts,  New  Hampshire 

Nashua  Manufacturing New  Hampshire 

Nashville,  Chattanooga  &  St.  Louis New  York Tenn.,  Ga.,  Ala.,  Ky. 

National  Acme New  York  Curb Ohio 

National  Biscuit New  York New  Jersey 

National  Carbon ...» Chicago,  Boston New  Jersey 

National  Cash  Register Ohio 

National  Cloak  and  Suit New  York New  York 

National  Enameling  and  Stamping New  York,  St.  Louis New  Jersey 

National  Fire  Proofing Pittsburgh Pennsylvania 

National  Lead New  York New  Jersey 

National  Railways  of  Mexico New  York Mexico 

National  Transit New  York  Curb Pennsylvania 

Nanmkeag  Steam  Cotton Massachusetts 

Nevada  Consolidated New  York,  Boston Maine 

New  Arcadian Boston Michigan 

New  Central  Coal New  York West  Virginia 

New  England  Cotton  Yarn Boston Massachusetts 

New  England  Navigation Connecticut 

New  England  Telephone  and  Telegraph. Boston New  York 

New  Idria  Quicksilver Boston Wyoming 

New  Jersey  Zinc West  Virginia 

New  River Boston West  Virginia 

New  York  Air  Brake New  York New  Jersey 

New  York  Central New  York New  York 

New  York,  Chicago  &  St.  Louis New  York N.Y.,  Ohio,  Ind.,  Pa. 

New  York  Dock New  York New  York 

New  York,  Lackawanna  &  Western New  York New  York 

New  York  Mutual  Gas  Light 

New  York,  New  Haven  &  Hartford New  York,  Boston Conn.,  Mass.,  R.I. 

New  York,  Ontario  &  Western New  York New  York 


LIST  OF  CORPORATIONS  121 

State  where 

Name  of  company  Stock  Exchange  incorporated 

or  organized 

New  York  Railways New  York 

New  York,  Susquehanna  &  Western Philadelphia New  Jersey,  Pennsylvania 

New  York  Telephone New  York 

New  York  Transit New  York  Curb New  York 

Newmarket  Manufacturing Massachusetts 

Niagara  Falls  Power New  York New  York 

Nicholson  File Providence Rhode  Island 

Niles-Bement-Pond New  Jersey 

Nipissing  Mines Boston,  Montreal,  Toronto Maine 

Norfolk  &  Western New  York Virginia 

Norfolk  Southern New  York Virginia 

North  American  Company New  York,  St.  Louis New  Jersey 

North  American  Pulp  and  Paper New  York  Curb Massachusetts 

North  Butte  Mining Boston Minnesota 

North  Lake  Mining Boston Michigan 

Northern  Central  Railway New  York,  Philadelphia,  Baltimore, 

Pennsylvania,  Maryland 

Northern  Ohio  Traction  and  Light New  York,  Cleveland,  Cincinnatti Ohio 

Northern  Pacific New  York Wisconsin 

Northern  Pipe  Line New  York  Curb Pennsylvania 

Northern  Railroad  (B.  &  M.) Boston New  Hampshire 

Northern  Securities New  Jersey 

Northern  Texas  Electric Boston,  Louisville Maine 

Nova  Scotia  Steel New  York,  Boston Nova  Scotia 

Ohio  Cities  Gas New  York Ohio 

Ohio  Copper  Mining New  York  Curb Maine 

Ohio  Fuel  Supply New  York,  Pittsburgh Ohio 

Ohio  Oil New  York  Curb Ohio 

Ojibway  Mining Boston Michigan 

Oklahoma  Natural  Gas Pittsburgh Oklahoma 

Old  Colony  Copper Boston : Michigan 

Old  Colony  Railroad Boston Massachusetts 

Old  Dominion New  York,  Boston Maine 

Ontario  Silver  Mining New  York Utah 

Oregon  &  California  Railroad Oregon 

Oregon  Short  Line Utah 

Oregon-Washington  Railroad  and 

Navigation Oregon 

Osceola  Consolidated Boston Michigan 

Otis  Elevator Chicago New  Jersey 

Owens  Bottle-Machine New  York Ohio 

Pabst  Brewing New  York Wisconsin 

Pacific  Coast  Company New  York,  Boston New  Jersey 

Pacific  Gas  and  Electric California 

Pacific  Mail New  York New  York 

Pacific  Mills Massachusetts 

Pacific  Telephone  and  Telegraph New  York,  San  Francisco California 

Pan-American  Petroleum  and  Transport  New  York Delaware 

Parker  Mills Massachusetts 

Parrot  Silver  and  Copper Montana 

Pennsylvania  Coal  and  Coke Pennsylvania 

Pennsylvania  Railroad New  York,  Philadelphia Pennsylvania 

Pennsylvania  Salt  Manufacturing Philadelphia Pennsylvania 

Pennsylvania  Steel Philadelphia New  Jersey 

Pennsylvania  Textile Pennsylvania 

Peoples'  Gas  Light  and  Coke New  York,  Chicago Illinois 

Peoria  &  Eastern New  York Illinois,  Indiana,  Ohio 

Pepperell  Manufacturing Maine 

Pere  Marquette New  York,  Boston Michigan,  Indiana 

Pettibone,  Mulliken New  York New  York 

Phelps,  Dodge  and  Company New  York New  York 


122  LIST  OF  CORPORATIONS 

State  where 

Name  of  company  Stock  Exchange  incorporated 

or  organized 

Philadelphia  Company New  York,  Philadelphia Pennsylvania 

Philadelphia  Electric Philadelphia New  Jersey 

Philadelphia  Rapid  Transit New  York,  Philadelphia Pennsylvania 

Philadelphia  Traction Philadelphia Pennsylvania 

Pierce  Manufacturing Massachusetts 

Pierce  Oil New  York  Curb Virginia 

Pittsburgh  Brewing Pittsburgh Pennsylvania 

Pittsburgh,  Cincinnati,  Chicago  &  St. 

Louis New  York,  Philadelphia Pa.,  W. Va. 

Pittsburgh  Coal New  York,  Pittsburgh Pennsylvania 

Pittsburgh,  Ft.  Wayne  &  Chicago New  York,  Pittsburgh .. Ohio,  Ind.,  111.,  Pa. 

Pittsburgh  Oil  and  Gas Pittsburgh Delaware 

Pittsburgh  Plate  Glass Pittsburgh Pennsylvania 

Pittsburgh  Steel New  York,  Pittsburgh New  Jersey 

Plymouth  Cordage Massachusetts 

Pocasset  Manufacturing Massachusetts 

Pond  Creek  Coal Boston Maine 

Pope  Manufacturing Hartford Massachusetts 

Prairie  Oil  and  Gas New  York  Curb Kansas 

Pratt  &  Whitney New  Jersey 

Pressed  Steel  Car New  York New  Jersey 

Public  Service  Corporation  of  New 

Jersey New  York New  Jersey 

Pullman  Company New  York,  Boston,  Chicago Illinois 

Punta  Alegre  Sugar Boston Delaware 

Quaker  Oats Chicago New  Jersey 

Quicksilver  Mining New  York New  York 

Quincy  Mining Boston Michigan 

Railway  Steel  Spring New  York New  Jersey 

Ray  Consolidated New  York,  Boston Maine 

Reading New  York,  Philadelphia Pennsylvania 

Reece  Button  Hole  Machine Boston Maine 

Reece  Folding  Machine Boston Maine 

Regal  Shoe Maine 

Remington  Typewriter New  York  Curb New  York 

Renfrew  Manufacturing Massachusetts 

Republic  Iron  and  Steel New  York New  Jersey 

Riker  &  Hegeman New  York  Curb New  York 

Rotary  Ring Boston Delaware 

Royal  Baking  Powder New  Jersey 

Rubber  Goods  Manufacturing New  York New  Jersey 

Rumely  (M.)  Company New  York Indiana 

Rutland  Railroad New  York,  Boston Vermont,  New  York 

Sagamore  Manufacturing Massachusetts 

St.  Joseph  Lead New  York  Curb New  York 

St.  Joseph  &  Grand  Island New  York Kansas,  Nebraska 

St.  Louis  &  San  Francisco New  York,  Boston Missouri 

St.  Louis  Southwestern New  York Missouri 

St.  Mary's  Mineral  Land Boston New  Jersey 

San  Pedro,  Los  Angeles  &  Salt  Lake Utah 

Santa  F6  Gold  and  Copper Boston New  Jersey 

Sao  Paulo  Traction,  Light  and  Power.  ..Montreal Ontario 

Savannah  Electric Boston,  Louisville Georgia 

Saxon  Motor New  York New  York 

Scovill  Manufacturing Connecticut 

Seaboard  Air  Line Virginia 

Seaconnet  Mills Massachusetts 

Sears,  Roebuck  and  Company New  York,  Chicago New  York 

Seneca  Copper New  York  Curb,  Boston  Stock... New  York 

Shannon  Copper Boston Delaware 


LIST  OF  CORPORATIONS 


123 


State  where 

Name  of  company  Stock  Exchange  incorporated 

or  organized 

Sharp  Mills Massachusetts 

Shattuck- Arizona  Copper New  York,  Boston Minnesota 

Shawinigan  Water  and  Power .Montreal Quebec 

Singer  Manufacturing New  Jersey 

Slater  Mills Massachusetts 

Sloss-Sheffield New  York,  Richmond New  Jersey 

Solar  Refining New  York  Curb Ohio 

South  Penn.  Oil New  York  Curb Pennsylvania 

South  Porto  Rico  Sugar New  York New  Jersey 

South  Utah  Mines  and  Smelters Boston Maine 

Southern  Pacific New  York Kentucky 

Southern  Pipe  Line New  York  Curb Pennsylvania 

Southern  Railway New  York,  Baltimore,  Richmond . .  Virginia 

Standard  Milling New  York New  Jersey 

Standard  Motor New  York  Curb,  Boston  Curb..  New  Jersey 

Standard  Oil  (California) New  York  Curb California 

Standard  Oil  (Indiana) New  York  Curb Indiana 

Standard  Oil  (Kansas) New  York  Curb Kansas 

Standard  Oil  (Kentucky) New  York  Curb Kentucky 

Standard  Oil  (Louisiana) New  York  Curb Louisiana 

Standard  Oil  (Nebraska) New  York  Curb Nebraska 

Standard  Oil  (New  Jersey) New  York  Curb New  Jersey 

Standard  Oil  (New  York) New  York  Curb New  York 

Standard  Oil  (Ohio) New  York  Curb Ohio 

Standard  Screw New  Jersey 

Stevens  Manufacturing Massachusetts 

Stewart  Mining New  York  Curb,  Boston  Curb Idaho 

Stewart  Warner  Speedometer New  York,  Chicago Virginia 

Studebaker  Corporation New  York,  Chicago New  Jersey 

Stutz  Motor New  York New  York 

Submarine  Boat New  York  Curb New  York 

Submarine  Signal Boston  Curb Maine 

Sullivan  County  Railroad New  Hampshire 

Suncook  Mills Massachusetts 

Superior  &  Boston Boston Arizona 

Superior  Copper Boston Michigan 

Superior  Steel New  York  Curb Pennsylvania 

Swan  &  Finch New  York  Curb New  York 

Swift  and  Company Chicago,  Boston Illinois 

Tamarack  Mining Boston Michigan 

Tecumseh  Mills Massachusetts 

Tennessee  Central  Railroad Tennessee 

Tennessee  Coal,  Iron  &  Railroad New  York Tennessee 

Tennessee  Copper New  York,  Boston New  Jersey 

Terre  Haute  Traction  and  Light Indiana 

Texas  &  Pacific New  York,  Philadelphia U.S.,  Texas 

Texas  Central Texas 

Texas  Company New  York Texas 

Texas  Pacific  Land  Trust New  York Texas* 

Third  Avenue New  York New  York 

Thomas  G-.  Plant  Company Boston Massachusetts 

Thorndike  Company Massachusetts 

Tobacco  Products New  York Virginia 

Toledo  Railways  and  Light New  York,  Cincinnati,  Cleveland, 

Louisville,  Columbus Ohio 

Toledo,  St.  Louis  &  Western New  York Indiana 

Tonopah  Mining Philadelphia,  San  Francisco Delaware 

Torrington Boston,  Hartford Maine 

Transue  and  Williams  Steel New  York Ohio 

Tremont  and  Suffolk  Mills Massachusetts 

Twin  City  Rapid  Transit New  York,  Toronto,  Montreal . .  New  Jersey 


124  LIST  OF  CORPORATIONS 

Stale  where 

Name  of  company  Stock  Exchange  incorporated 

or  organized 

Underwood  Typewriter New  York Delaware 

Union  Bag  and  Paper New  York New  Jersey 

Union  Carbide Chicago Virginia 

Union  Cotton  Manufacturing Massachusetts 

Union  Mills Maine 

Union  Natural  GOB Pittsburgh Delaware 

Union  Pacific New  York,  Boston Utah 

Union  Switch  and  Signal Pittsburgh,  Chicago Pennsylvania 

Union  Tank  Line New  York  Curb New  Jersey 

Union  Traction  (Philadelphia) Philadelphia Pennsylvania 

United  Alloy  Steel New  York  Curb New  York 

United  Cigar  Manufacturing New  York New  York 

United  Cigar  Store*. New  York  Curb New  Jersey 

United  Drug New  York,  Boston Massachusetts 

United  Dry  Goods New  York Delaware 

United  Electric  Securities Boston Maine 

United  Fruit New  York,  Boston New  Jersey 

United  Gas  Improvement Philadelphia Pennsylvania 

United  Motor  Corporation New  York  Curb New  York 

United  Paper  Board Chicago New  Jersey 

United  Profit  Sharing New  York  Curb Delaware 

United  Railways  Investment New  York,  Philadelphia New  Jersey 

United  Shoe  Machinery Boston New  Jersey 

United  States  Cast  Iron  Pipe New  York New  Jersey 

United  States  Envelope Hartford Maine 

United  States  Finishing Connecticut 

United  States  Industrial  Alcohol New  York West  Virginia 

United  States  Light  and  Heat  Corporation New  York 

United  States  Realty  and  Improvement  .N  ew  York New  Jersey 

United  States  Reduction  and  Refining . .  Ne w  York New  Jersey 

United  States  Rubber. New  York,  Boston New  Jersey 

United  States  Smelting,  Refining  and 

Mining New  York,  Boston Maine 

United  States  Steamship New  York  Curb Maine 

United  States  Steel New  York,  Boston,  Pittsburgh . .  New  Jersey 

United  States  Worsted Massachusetts 

United  Verde  Copper West  Virginia 

United  Verde  Extension New  York  Curb,  Boston  Curb Delaware 

Utah  Consolidated Boston New  Jersey 

Utah  Copper New  York,  Boston New  Jersey 

Vacuum  Oil New  York  Curb New  York 

Vandalia  Railroad New  York Indiana,  Illinois 

Ventura  Oil Boston Maine 

Victoria  Copper Boston Michigan 

Virginia-Carolina  Chemical New  York,  Richmond New  Jersey 

Virginia  Iron,  Coal  and  Coke New  York Virginia 

Virginian  Railway Virginia 

Vulcan  Detinning New  York New  Jersey 

Wabash-Pittsburgh  Terminal  Railway Pa.,  Ohio,  W.Va. 

Wabash  Railroad New  York 111.,  Ind.,  Mich.,  Mo.,  Ohio 

Wamsutta  Mills Massachusetts 

Washington  Oil New  York  Curb Pennsylvania 

Washington  Railway  &  Electric Washington,  D.  C District  of  Columbia 

Wells- Fargo New  York Colorado 

West  End  Street  Railway Boston Massachusetts 

West  Pennsylvania  Traction  and  Water 

Power Pittsburgh West  Virginia 

Western  Maryland  Railway New  York Md.,  W.Va.,  Pa. 

Western  Electric Illinois 

Western  New  York  &  Pennsylvania  Ry .  Philadelphia Pennsylvania,  New  York 

Western  Pacific  Railway Calif omim 


LIST  OF  CORPORATIONS  125 

State  where 

Name  of  company  Stock  Exchange  incorporated 

or  organized 

Western  Union  Telegraph New  York,  Boston New  York 

Westinghouse  Air  Brake Pittsburgh Pennsylvania 

Westiughouse  Electric  and  Mfg New  York,  Pittburgh,  Boston. Pennsylvania 

Westmoreland  Coal Philadelphia Pennsylvania 

Weyman-Bruton New  York New  Jersey 

Wheeling  &  Lake  Erie New  York Ohio 

White  Motor New  York Ohio 

Whitman  Hills Massachusetts 

Willys-Overland New  York Ohio 

Wilson  and  Company New  York,  Chicago New  York 

Wilton  Railroad New  Hampshire 

Winchester  Repeating  Arms Connecticut 

Winona  Copper Boston Michigan 

Wisconsin  Central  Railroad New  York,  Boston Wisconsin 

Wolverine  Copper Boston Michigan 

Woolworth  (F.  W.)  Company New  York New  York 

World  Film New  York  Curb v Virginia 

Worthington  Pump  and  Machinery New  York Virginia 

Wright-Martin  Air  Craft New  York  Curb New  York 

Wyandot  Copper Boston Michigan 

Yazoo  &  Mississippi  Valley  Railroad Mississippi 

Zinc  Concentrating New  York  Curb Delaware 


LIST  OF  STATE  OFFICIALS 

IN  CHARGE  OF  INHERITANCE  TAX  MATTERS 

As  executors  and  attorneys  frequently  waste  much  time  in 
trying  to  locate  the  proper  state  official  with  whom  to  adjust 
the  tax,  we  have  here  compiled  a  list  so  far  as  possible  of  the 
addresses  of  such  officials. 

Arizona.  State  Treasurer,  Phoenix. 

Arkansas.  Attorney-General,  Little  Rock. 

California.  Office  of  Controller,  Inheritance  Tax  Depart- 
ment, Sacramento. 

Colorado.  Attorney-General,  Inheritance  Tax  Department, 
Denver. 

Connecticut.  Tax  Commissioner,  Hartford. 

Delaware.  Secretary  of  State,  Dover. 

Georgia.  Court  of  Ordinary  of  county  having  jurisdiction 
of  the  property. 

Idaho.  Judge  of  Probate  Court  in  county  where  property  is 
situated. 

Illinois.  Office  of  Attorney-General,  Inheritance  Tax  De- 
partment, Otis  Building,  Chicago. 

Indiana.  State  Tax  Commission,  Inheritance  Tax  Investi- 
gator, Indianapolis. 

Iowa.  State  Treasurer,  Des  Moines. 

Kansas.  Tax  Commission,  Topeka. 

Kentucky.  County  Court  where  property  is  located. 
(Southern  Pacific  transferred  in  Jefferson  County,  Louis- 
ville.) The  local  sheriff  acts  as  collector. 

Louisiana.  Attorney  for  Inheritance  Tax  Collector  (Sam- 
son Levy),  New  Orleans. 

Maine.  Attorney-General,  Augusta. 

Maryland.  State  Tax  Commission,  504  Union  Trust  Build- 
ing, Baltimore. 

Massachusetts.  Tax  Commissioner,  Inheritance  Tax  Divi- 
sion, Boston. 


128  LIST  OF  STATE  OFFICIALS 

Michigan.  Attorney-General,  Lansing. 

Minnesota.  Attorney-General,  St.  Paul. 

Missouri.  State  Auditor,  Jefferson  City. 

Montana.  State  Treasurer,  Helena. 

Nebraska.  County  Court  where  property  is  situated. 

Nevada.  State  Controller,  Carson  City. 

New  Hampshire.  State  Treasurer,  Legacy  Tax  Department, 
Concord. 

New  Jersey.  Comptroller  of  the  Treasury,  Trenton. 

New  York.  Comptroller,  Albany. 

North  Carolina.  Corporation  Commission,  Raleigh. 

North  Dakota.  Tax  Commission,  Bismarck. 

Ohio.  Tax  Commission,  Columbus. 

Oklahoma.  State  Corporation  Commission,  Oklahoma  City. 

Oregon.  Treasury  Department,  Salem. 

Pennsylvania.  Auditor-General,  Harrisburg. 

Porto  Rico.  Treasurer,  San  Juan. 

Rhode  Island.  Board  of  Tax  Commissioners,  Providence. 

South  Dakota.  Tax  Commission,  Pierre. 

Tennessee.  Judge  of  Probate  Court  in  county  where  prop- 
erty is  situated. 

Texas.  Judge  of  Probate  Court  in  county  where  property 
is  situated. 

Utah.  Attorney-General,  Salt  Lake  City. 

Vermont.  Commissioner  of  Taxes,  Northfield. 

Virginia.  Auditor  of  Public  Accounts,  Richmond. 

Washington.  State  Board  of  Tax  Commissioners,  Olympia. 

West  Virginia.  State  Tax  Commissioner,  Charleston. 

Wisconsin.  Tax  Commission,  Madison. 

Wyoming.  County  Treasurer  of  county  where  property  or 
principal  office  of  corporation  is  situated. 

United  States.  Collector  of  Internal  Revenue  for  district  in 
which  decedent  lived.  If  decedent  was  a  non-resident, 
Collector  of  Internal  Revenue  for  district  in  which  estate 
is  located,  but  if  estate  is  located  in  several  districts, 
then  Collector  of  Internal  Revenue  at  Baltimore,  Mary- 
land. 


LIST  OF  CANADIAN  OFFICIALS 

IN  CHARGE  OF  INHERITANCE  TAX  MATTERS 

Federal  Government,  Secretary  of  State,  Ottawa. 

Alberta.  Provincial  Secretary,  Edmonton. 

British  Columbia.  Treasury  Department,  Victoria. 

Manitoba.  Provincial  Treasurer,  Winnipeg. 

New  Brunswick.  Provincial  Treasurer,  Fredericton. 

Nova  Scotia.  Provincial  Secretary,  Halifax. 

Ontario.  Solicitor  to  the  Treasury,  Toronto. 

Prince  Edward  Island.  Provincial  Secretary,  Charlotte- 
town. 

Quebec.  Receivers  of  Succession  Duties,  9  St.  James  Street, 
Montreal. 

Saskatchewan.  Provincial  Secretary,  Regina. 


INDEX 


Administration,     superiority     of 

central  system,  27. 
Alabama,  17. 
Aliens,  tax  on,  2.  38,  42,  72/ 

discriminated  against  in  Can- 
ada, 111. 
Ancillary  probate,  76. 

an  unnecessary  hardship,  15. 
Annuitant,  appraisal  of  share  of, 

85. 

Appraisal  of  securities,  104. 
Arizona,  19. 
Arkansas,  20. 

Associations,  shares  in,  50,  105. 
Avoiding  tax,  by  keeping  securi- 
ties in  name  of  brokers, 
106. 

by  joint  ownership,  106. 
by  creation  of  trust,  106. 
by  waiving  legacies,  107. 
by  incorporating,  107. 

Bank  deposit,  taxation  of,  110. 
Bonds,  tax  on,  11. 

double  taxation  of,  110. 
situs  from  location  in  State, 

14. 

Brokers,  keeping  securities  in 
name  of,  as  means  of  avoid- 
ing tax,  106. 

California,  22. 
Canada,  109. 

list  of  tax  officials  in,  129. 
Canadian  Pacific,  taxation  of,  109. 
Charitable  bequests,  104. 
Collaterals,  distinguished,  4. 

table,  5. 
collateral  inheritances  often 

exempt,  16. 
Connecticut,  26. 

Corporations,  ownership  of  prop- 
erty as  basis  for  tax,  12. 


creation  of,  as  means  of  avoid- 
ing tax,  107. 

list  of,  113. 
Co-tenants,  tax  on,  3,  48. 

joint  ownership  as  means  of 
avoiding  tax,  106. 

Delaware,  29. 

Direct  inheritance  and  collateral 

distinguished,  4. 
rates  tabulated,  5. 
Direct  inheritances  often  exempt, 

16. 

Direct  tax,  what  is,  110. 
District  of  Columbia,  17. 
Double  taxation,  2,  3,  107. 

means  of  avoiding,  106, 107. 
to  be  avoided  by  Federal  law, 

103. 

death  of  legatee,  66. 
Louisiana  plan  for  avoiding, 

43. 
avoided  in  Pennsylvania,  79. 

Evasion  of  tax.    See  AVOIDING 

TAX. 
Exemptions,  6. 

tabulated,  7,  8. 

applied  to  non-residents,  15. 

Federal  law,  96. 

to  supersede  State  laws,  103. 
Florida,  18. 

Georgia,  30. 

Great  Northern  Ore  certificates, 
status  of,  105. 

History  of  legislation,  1,  100. 
effect  of  unfair  laws,  16. 

Idaho,  31. 
Illinois,  33. 


132 


INDEX 


Indiana,  35. 

Inheritance  tax,  nature  of, 
whether  direct  or  indirect, 
110,  111. 

held  to  be  on  property  in 
Missouri  and  Pennsyl- 
vania, 79. 

Insurance  policies,  3,  51,  94. 

International  Tax  Conference, 
proceedings  of,  100. 

Iowa,  37. 

Joint  ownership,  tax  on  co-ten- 
ants, 3,  48. 
as  means  of  avoiding  tax,  106. 

Kansas,  39. 
Kentucky,  40. 

Legatee,  death  of,  66. 
Louisiana,  42. 

Maine,  45. 
Maryland,  47. 
Massachusetts,  48. 
Minnesota,  53. 
Mississippi,  18. 
Missouri,  56. 
Montana,  57. 

National  banks,  tax  on  stock  in, 

13. 

Nature  of  tax,  79,  110,  111. 
Nebraska,  58. 
Nevada,  60. 
New  Hampshire,  61. 
New  Jersey,  63. 
New  Mexico,  18. 
New  York,  67. 
Non-residents'  tax,  9. 

tabulated,  10. 

property  of,  taxable  in  gen- 
eral, 13. 

stock,  9. 

transfer  offices,  10. 

bonds,  11. 

coupon  and  registered,  11. 

stock  in  corporations  own- 
ing property  in  State,  12. 

"ratio  provision,"  12,  64. 


exemptions  applied  to,  15. 

various  hardships  on,  13. 
North  Carolina,  70. 
North  Dakota,  71. 

Officials,  list  of,  127. 
Ohio,  74. 
Oklahoma,  75. 
Oregon,  76. 

Penalty   for  delay  in  payment, 

104. 

Pennsylvania,  78. 
Porto  Rico,  80. 
Practice,  often  not  fixed,  3. 
Property,  taxable  in  general,  13. 
which  has  borne  its  share  of 

taxation,  43. 

Rates  and  exemptions,  6. 
tabulated,  7,  8. 

"Ratio   provision"    in   non-resi- 
dents' tax,  12,  40. 

Real  estate  trusts,  shares  in,  50. 

Reform  of  law,  100. 

Residents,  property  of,  taxable  in 
general,  13. 

Rhode  Island,  81. 

Safe-deposit  companies,  duties  of, 

14. 

Situs,  of  personal  property,  13. 
of  stock,  9. 

of  bonds  for  taxation,  14. 
South  Carolina,  18. 
South  Dakota,  82. 
Stock,  situs  of,  9. 

in  corporations  owning  prop- 
erty in  the  State,  tax  on, 
15. 

Tables,  direct  and  collateral,  5. 
rates  and  exemptions,  7,  8. 
non-resident  taxation,  10,  11. 
States  having  no  inheritance 

taxes,  17. 

of  Canadian  statutes,  111. 
of  corporations,  113. 
of  proposed  rates,  101,  102. 
of  tax  officials,  127. 


INDEX 


133 


Tennessee,  84. 

Texas,  85. 

Transfer  offices,  as  basis  for  tax, 

9. 
Trust,  creation  of,  as  means  of 

avoiding  tax,  106. 
Trust  certificates,  55. 

status  of,  105. 
Trusts,  shares  in,  50. 

Unfair  laws,  effect  of,  16. 
Uniform  law,  movement  for,  100. 
United  States,  96 


double  taxation  to  be  avoided 

by  Federal  law,  103. 
Utah,  86. 

Vermont,  87. 
Virginia,  88. 

Waiver  of  legacies  as  means  of 

avoiding  tax,  107. 
Washington,  89. 
West  Virginia,  90. 
Wisconsin,  92. 
Wyoming,  95. 


CAMBRIDGE  .  MASSACHUSETTS 
V   .  S   .  A 


UC  SOUTHERN  REGIONAL  LIBRARY  FACILITY 


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